Put. A put (on a stock) is a contract or written agreement binding the issuer to receive from the
holder stock named in the agreement within a certain time at a certain price if the holder shall so
demand, or in other words, shall elect to deliver (put) the stock. For example, A signs a promise to
receive 100 shares of some specified stock from B at loo at any time within 60 days if B so
demands. A sells this promise to B for, say, $100. If within the 60 days the stock falls in price so
that B can buy it at a profit B buys it at the lower price and calls on A to receive the stock. The
stock must go below 99 before there is a profit for B. If the stock advances or does not fall below
99 B, of course, does not deliver (put) it and A makes $100 on his risk. In delivering the stock B
must give one day's notice, except on the last day, when no notice is required.