Confused about puts

[jaspal]

Dear Trader ji

I am very confused about Put if you have a time then please tell
me what is put ? .


This is my thinking about puts :

when any share move downward then puts price will rise.

Example:: like maruti 430 put is Rs. 8.85 when maruti was 428.95

Now ( 22/03/05 ) 11 05 its put price is 8.00 and marutieq price is high 430.25



is there any fixed rule to calculate the puts price? how puts
price is calculated?


Thanks
Jaspal

 

[andy]

You can read the basics of options !