If the authority had to sell put options, it would have to allocate part of its reserves as liabilities against the options it sold.

ECONOMIST: The Hong Kong dollar: Off the peg? | The

But put options are expensive, which is why some companies choose to sell call options to finance the purchase of their puts a strategy used by Ashanti.

ECONOMIST: Gold hedging: Bugs | The

But if it cannot get that, it plans to sell out of Italenergia, dealing with the put options as best it can.

ECONOMIST: Corporate finance in Europe

Put options (a contract to sell the stock at a future date) lock in a sell price, but increase costs, especially since they expire worthless if not executed.

FORBES: Lessons From The Flash Crash

He used put options, which give investors the right to sell stock at certain price.

WSJ: How the Knight Glitch Roiled Investors

Put options, which give holders the right to sell stock at a prearranged price, are complicated enough.

FORBES: Investing

Put options, which give you the right to sell something at a certain price, are a form of insurance that pays off if that something crashes.

FORBES: Eight Ways To Bet Against Ben Bernanke

Or hedgers could buy put options, which give them the right to sell gold if it is to their advantage, but walk away if prices rise.

ECONOMIST: Gold hedging: Bugs | The

Thinking about the mechanics of selling a put spread, you would buy the nearer term and sell the farther term options.

FORBES: An Options Strategy The Rolling Stones Would Love