PUT OPTION
This is a natural phenomena of buying and selling. Barter system was introduced in beginning to exchange goods and services. A man is trying to achieve their living hood by some means of business. So he adopts some procedures of buying and selling. He purchases items for their needs and sell extra items. But in put option, a physical contract is established between buyer and seller in the market and out of market place. Put option involved in buying process whereas seller is also involved to give the buying item. One party is buying and other is selling to make the profit. This process is held in a fixed period of time at strike prices. If a person needed dollars after six month period so he will put a demand for a bank. He will buy dollars at current rates but will receive after six month period at the same prices. Exchange rates are changing time to time according to market up and down of prices. The value of dollars after six month will change whereas he will get on price according to arranged rates. Extra price will be adjusted by bank. Stock market is a place where business of share takes place for purpose of profit. Investors put option and sell shares in the stock market at specified rates to earn their profit for their living. Investment of money is for the purpose of profit regarding put option. Call option have put option in their response in the stock market. So trade takes place in country conduct by community.
Brokers play an important role in put option between buyer and seller. They purchase shares from the investors up to the demand to reduce the risk of loss in the stock market. Value of share is up, investor sale his shares in view of profit. He adopts many strategies to run his business in the market. Trade trend strategies are very necessary for investor to earn profit in respect of their investment of money. Risk of loss tends a investor toward call option which he puts option. At beginning stage broker spread shares in the community to increase the liquidity of stock market. They motivate investors to invest money in the market to increase the business. They show Statistical trends of investors in the stock market to earn their profit. Purchase of shares up to ending level is the strategy of brokers to finish the uncertainty problem of investors. Put option is one of the broker behaviors in the stock market trade to satisfy community. Sellers search for buyers in the stock market through brokers. Clients do not know about strategically methods of the trade trends in the stock market flow day to day. Help of broker is must to bargain share value during contract between the parties. Companies take deed agreement during sale of their shares in the stock market. Registered companies have the authorities of call options to put options in the stock market trade. A list is published in the stock market which shows companies. Out of listing trade and investment is a risk money investment. Only low investors adopt such methods in short interval of time to earn profit. Large companies are enlisted and work properly in the stock market to put option and call option respectively.
