Describe why an investor might sell a put-02172

A put option gives the buyer the right to sell (or "put away") 100 shares of a particular common stock at a specified price prior to a specified expiration date. If exercised, the shares are sold by the owner (buyer) of the put contract to a writer (seller) of this contract who has been designated to take delivery of the shares and pay the specified price. Investors purchase puts if they expect the stock price to foil, because the value of the put will rise as the stock price declines. Therefore, puts allow investors to speculate on * decline in the stock price without selling the common stock short.