At press time, ether puts expiring in seven days, one and two months traded at premiums of 5%, 3% and 0.3%, respectively, to calls. A put option gives the purchaser the right, but not the obligation, to sell the underlying asset at a predetermined price at a later date. A call option gives the right to buy, so the premium for puts – which provide protection against a price decline – indicates a bearish outlook.
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