What are put options? This is Amit, who are the company's shares to the ACC. The current price of the shares is Rs 1200, and he is afraid that this will probably reduce the rate of shares. If the name is Rahul who thinks that if other investors the company's shares are fetching even stable fairly price ACC and good profit. At the time of the agreement of Amit and Rahul Put Option. According to this agreement, the company reveals Amit ACC Shares and rights to sell shares to the Rahul was affected to buy at this price, i.e. Rs 1200 becomes obligated a period of one month. And whatever the market price of the shares. According to the provisions of the agreement or Amit Rahul Rs 10 per share, giving a premium for. If the ACC company's share price of Rs 1200. Amit Put option than if they were using the filling can remove themselves to sell at the rate of Rs 1200 to R shares. On the other hand, if the price of shares in the company rose more than Rs 1200 Amit those shares at market price and the amount of the sale may get back your premium. The put option would quit this volatile market is at least the risk of investors.