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Technology Stocks : Dell Technologies Inc.
DELL 133.20+5.7%Nov 26 3:59 PM EST
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To: Joey the MD who wrote (63965)9/7/1998 12:11:00 PM
From: Chuzzlewit  Read Replies (1) of 176387
 
Joey, confusion prevails: a put contract is the right to sell stock at a predetermined price (the strike price) within a predetermined period. The obligation rests with the seller of the puts to purchase shares from the buyer of the put at the strike price at the discretion of the put owner. If Dell sells put contracts how can it exercise them? The holder of the contract (i.e., the buyer of the put) has the right to sell shares. The seller of the put cannot obligate the buyer to sell his shares.

TTFN,
CTC
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