Expeditions Incorporated and BookItNow compete as online travel agencies. The following amounts were reported by the two companies in the three months ended June 30, 2019.



(in millions) Net Income Total Assets Total Liabilities Total Revenues
Expeditions Incorporated $ 1,230 $ 9,370 $ 6,700 $ 6,880
BookItNow 3,320 8,850 4,570 8,110


Required:

Calculate each company’s net profit margin expressed as a percent.

Which company has generated a greater return of profit from each revenue dollar?

Answers

Answer 1

BookItNow firm is the company that has generated a greater return of profit from each revenue dollar.

What is a net profit margin?

Basically, the net profit margin is the margin that measures the amount of net profit a company obtains per dollar of revenue gained. The net profit margin is an example of a profitability ratio and measures the ability of a firm to earn a profit from its assets. The formula for Net profit margin = Net income / Revenue

Expeditions Incorporated Net profit margin:

= $1,230 / $6,880

= 0.17877907

= 17.88%

BookItNow Net profit margin:

= $3,320 / $8,110

= 0.409371147

= 40.94%

Because BookItNow Net profit margin of 40.94% is higher than Expeditions Incorporated Net profit margin of 17.88%, hence, the BookItNow firm is the company that has generated a greater return of profit from each revenue dollar.

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Related Questions

In this example, Daniel & Claire each deposited $10,000 in high interest savings accounts and each earned 5% interest annually. Daniel’s ROI remained the same each year while Claire’s increased each year. What type of interest did Daniel’s bank pay? What type of interest did Claire’s bank pay?

Answers

1. Daniel's bank pay paid the regular simple interest, which does not compound on accumulated interest.

2. On the other hand, Claire's bank pay was paying a compounding interest on her savings account.

What is the difference between simple and compounding interests?

Simple interest is based on the regular interest rate, which does not compound accumulated interest.

The simple interest system applies the interest rate periodically on the principal without adding the accumulated interest.

On the other hand, compound interest adds accumulated interest to the principal before applying the interest rate to the sum each period.

For illustration:

Daniel's simple interest for two years:

= $10,000 x 5% x 2

= $1,000

ROI after 2 years = 10% ($1,000/$10,000 x 100)

Claire's compound interest for two years:

= $10,000 x 1.05^2

= $10,000 x 1.1025

= $11,025

= $1,025 ($11,025 - $10,000)

ROI after 2 years = 10.25% ($1,025/$10,000 x 100)

Thus, Claire's return on investment (ROI) is greater than Daniel's.

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A parallel interface standard that allows you to connect multiple devices to
a single interface adapter in a daisy chain configuration.

Answers

A multiline channel that has multiple lines capable of simultaneously sending data is referred to as a parallel interface. Most personal computers (PCs) have at least one parallel interface for attaching a printer using a parallel connection until USB ports became widely used.

Parallel interface Standard:

A serial port is an interface that enables a personal computer (PC) to send and receive data via a network of connected peripheral devices, such as a printer, using numerous cables. The Centronics port, used mostly for printers, is the most popular parallel port.

A wiring design known as a "daisy chain" in electrical and electronic engineering is one in which several devices are connected in a row or ring, resembling a garland of daisy blossoms. Power, analog signals, digital data, or any mix of the three may be transmitted using daisy chains.

A daisy chain is a sort of network topology that governs the connections between network nodes, which are usually computers. Different network topologies enable goals including fault tolerance, persistence, and simplicity of use.

The Centronics parallel interface, created and used in the Centronics 101 model printer in 1970, was the first parallel interface. This became the norm, although several types of wires were needed. Up to 50-pin connectors were produced by businesses including Dataproducts.

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Though these two types of estates can be broken down even further, what are the two basic types of
freehold estates?

fee simple estates and life estates
dower/curtesy estates and absolute estates
fee simple estates and dower/curtesy estates
absolute estates and life estates

Answers

The two basic types of freehold estates are fee simple estates and life estates.

The required details about freehold estates is mentioned in below paragraph.

Freehold estates are estates of indefinite period that may exist for an entire life or all the time. Some kinds of freehold estates are labeled as "estates of inheritance," in which the property keeps past the lifestyles of the holder and descends to their residing heirs upon dying as distinct through the desire or through law.A freehold property is possession in belongings. To be taken into consideration a freehold property, standards need to be met:

Immovable: The asset can not be moved; therefore, it's miles both land or a few form of hobby in that land.

No constant period of possession: The belongings may be exceeded on all the time if the proper standards are met. There isn't anyt any set timeline for possession withinside the belongings to expire.

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Helppp pleaseeeeeeeeeee

Answers

All Markup

All markup shows your changes with various text and line colors.

What is Markup?

A text or word processing file's markup is the sequence of letters or other symbols you insert at specific locations to specify how the file should appear when printed or displayed or to define the logical structure of the document. "Tags" are the markup indicators' common name.

How to start Markup?

From the Review tab, click the Display for Review command to the right of the Track Changes command. Select the desired option from the drop-down menu.

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What is the relationship between interest rate, aggregate income, and price level?

Answers

The relationship is that A growth in aggregate demand increases total output, which then fuels a rise in the need for money. This further fuels an excessive demand for money, which raises the interest rate.

What is meant by the aggregate income?

The sum of all incomes in an economy, unadjusted for taxes, inflation, or other sorts of double counting, is known as aggregate income. Consumption spending plus net profits equal aggregate income, a measure of GDP. In economics, "aggregate income" refers to a broad conceptual idea.

Gross income is what is referred to as aggregate income, and it typically refers to the combined incomes of a married couple filing a joint tax return. All

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What are the three main factors that search engines look for when
delivering results on the search engine results page?
1.
2.
3.

Answers

Three main factors that search engine look for are Relevance, Distance, Prominence.

Relevance- The term refers to how well a website's information corresponds to a search query. Relevance criteria include visible text, images, and videos as well as content elements. Furthermore, meta elements such as title, meta description, and alt tags can be used to generate relevance.
Distance- Based on the user's browser information, distance determines how close the search user is to local businesses. The greater the distance between the search user and a local business, the more likely that business will appear in the local maps results.
Prominence- The location of a keyword on a page is said to influence search rankings. SEO experts recommend using the target keyword of a page early in order to benefit from a ranking signal known as keyword prominence.

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a 5 year, zero-coupon bond has a maturity of $1000 and a present market price of $713. Its duration in years is
a. 4.7
b. 5
c. 4.2
d. 3.9

Answers

The duration in years of a 5-year zero-coupon bond with a maturity of $1,000 is B. 5.

What is the duration of a bond?

The duration of a bond refers to its maturity period starting from the issuance date.

The duration of a bond measures the likely price changes that may happen with interest rate changes, thereby measuring the interest rate risk inherent in the bond.

Calculating the duration of a bond enables investors to gauge how changes in the interest rate affect the bond's price.

At the end of the bond's duration, the face value is expected to be repaid to the bondholder.

However, within the intervening periods, the bond attracts periodic interest payments unless it is a zero-coup bond, whose market price is always less than the face value.

A 5-year bond does not have a duration of 4.7, 4.2, or 3.9 years.

Thus, the bond's duration is Option B, usually five years from the issuance date.

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What steps can you use to unprotect a form so you can make changes to it?

1. In the Restrict Editing pane, click
.

2. Type the
, and click OK.

3. Under
, remove the check mark to unprotect the form.

Answers

The necessary steps to use to unprotect a form so you can make changes to it are:

1. In the Restrict Editing pane, click the Protect group.

2. Type the Protect Document and click OK.

3. Under Protect Document, remove the check mark to unprotect the form.

What is a form protection?

It is a form of tiny, simple and non-invasive spam protection for online forms. The protection, is most based on the assumption that spam bots are not running JavaScript when loading targeted forms.

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Answer:

1. In the Restrict Editing pane, click ✔ Stop Protection

2. Type the ✔ password and click OK.

3. Under ✔ Editing restrictions, remove the check mark to unprotect the form.

A silver mine can yield 10,000 ounces of silver at a variable cost of $32 per ounce. The fixed costs of operating the mine are $40,000 per year. In half the years, silver can be sold for $48 per ounce; in the other years, silver can be sold for only $24 per ounce. Ignore taxes. a)What is the average cash flow you will receive from the mine if it is always kept in operation and the silver is always sold in the year it is mined? b)Now suppose you can costlessly shut down the mine in years of low silver prices. What happens to the average cash flow from the mine?

Answers

The Average cash flow for Question A is $314,000.

The Average cash flow for Question B is $100,000.

What is an Average cash flow?

This refers to the average amount of cash or cash-equivalent which a company receives or gives out by the way of payments to creditors.

The average cash flow to receive from the mine if it is always kept in operation and the silver is always sold in the year it is mined is computed as follows:

Average cash flow:

= (Best-case cash flow × % of time) + (Worst-case cash flow × % of time) - Variable costs - Fixed costs

= ($48 * 10,000 * 0.50) + ($24 * 10,000 * 0.50) - ($12,000 * 0.50) - $40,000

= $314,000

Supposing we can costlessly shut down the mine in years of low silver prices. What happens to the average cash flow from the mine is as computed as follows:

Average cash flow:

= (Best-case cash flow × % of time) + (Worst-case cash flow × % of time) - Variable costs - Fixed costs

= ($48 * 10,000 * 0.50) + $0 - ($24 * 10,000 * 0.50) - ($40,000 * 0.50)

= $100,000

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An example of secondary research is

Answers

Answer: ''textbooks, encyclopedias, news articles, review articles, and meta analyses.''

Explanation:

Authors may use data from scholarly publications, official records, statistical databases, and historical documents when conducting secondary research.

On November 1, 20X1, Gerakos Corporation sold software and a six-month technical support contract to a customer for $80,000. Gerakos sells the same software without technical support for $60,000. It sells technical support for $30,000. Gerakos allocates the transaction price based on relative stand-alone values.



Required:

What amount of revenue does Gerakos recognize in 20X1 and in 20X2? (Do not round intermediate calculations. Round your answers to the nearest whole dollar amount.)

Answers

The amount of revenue does Gerakos recognize in 20X1 is $62,222 and in 20X2 $17,778

What is Transaction price?

Transaction price is the pricing that is used when two products are sold together at a discounted price, the transaction price needs to be determined based on the stand alone prices of the products and then allocating the actual sales amount.

Transaction price determines the amount that needs to be recorded in a single period, and therefore is an important step to be performed in case of combo sales at discounted prices.

The calculation is as follows,

$60,000 + $30,000 = $90,000

Software $80,000 * ($60,000 / $90,000) = $53,333

Technical Support for 6 months $80,000 * ($30,000 / $90,000) =$26,667 * 2 / 6 = $8,889. (Multiplied with 2 months out of 6 months)

20X1

$53,333 + $8,889 = $62,222

20X2

$26,667 - $8,889 = $17,778

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Lannister Manufacturing has a target debt-equity ratio of 0.57. Its cost of equity is 21 percent, and its cost of debt is 10 percent. If the tax rate is 34 percent, what is the company's WACC?


Multiple Choice

16.56%


11.83%


14.98%


12.79%


15.77%

Answers

The Weighted average cost of capital (WACC) is E. 15.77%.

How to find the weighted average cost of capital (WACC)?

Using this formula to find the WACC

WACC = Weighted of debt × cost of debt × (1- tax rate) + Weighted of equity × cost of equity

Let plug in the formula

WACC = (1/1.57)(.21) + (.57/1.57)(.10)(1 − .66)

WACC = 0.13375 + 0.02396

WACC = 0.1577 × 100

WACC = 15.77%

Therefore the correct option is E.

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Please help me with this question

Answers

The confidence interval excludes zero, there is evidence that the vacancy rates in the two cities differ.

The confidence level= 0.90
The significant level α = 0.10

City 1:
The sample proportion:

P1= 27/175
  = 0.1543
City 2:
The sample proportion:

P2= 13/145
   = 0.0897

Critical value of Z
Z critical= z0.05
             ≈±1.645
90% confidence interval:
            ∧  ∧
P1-P2= (P1-P2) ±z√ [ p1(1-p1)/n1+ p2(1-p2)/n2]
       = (0.543- 0.0897) ± 1.645√ [ 0.1543× (1-0.1543) + 0.0897× (1-0.0897)]
    = 0.0646±0.595
0.0051≤(p1-p2) ≤0.1241

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The ______________ of an excise tax depends on the ________ of the taxed good's supply and demand curves.

Answers

The incidence of an excise tax depends on the price elasticity of the taxed good's supply and demand curves.

How really do extract charges influence the stockpile bend?

One of the six factors that affect supply is the tax on excise. Hey, move the supply curve to the left, increasing the equilibrium price while decreasing the supply. The supply curve will change until the tax equals the vertical distance between the two curves.

Expense Tax A tax on the sale of a product or service is called an excise tax. The excise tax creates a gap between consumers' and producers' prices, resulting in a reduction in transaction volume.

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International trade is fundamentally a ________________________.
a. win-lose situation
b. lose-lose situation
c. win-win situation
d. war which is won by the strongest

Answers

International trade, at its core, is a win-win arrangement. Hence, the right option is (c.) a win-win situation.

What is International trade?

International trade is the exchange of commodities and services between countries. Because of global commerce, people and countries have access to commodities and services that are either unavailable or more expensive in their own countries.

Tariffs, quotas, and nontariff barriers are the most frequent forms of trade restrictions. In international trade, a tariff is a federal government-imposed import tax that boosts the price of an item for the customer. Tariffs, sometimes known as levies or import charges, often begin by imposing limits on certain items.

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Which of the following statements is true of investments in training?

Answers

Answer: Option A

Explanation:

Instructors, both full-time staff members and individuals hired on a contract basis, typically represent the biggest cost of training

• What is the number of units to be produced if the firm desires to make a cost per unit and profit of Birr10,000 assuming the fixed cost, variable selling price per unit are Birr50,000, Birr10 and Birr20 respectively​

Answers

The number of units to be prod-uced if the firm desires to ma-ke a cost per unit and profit of Birr10,000 is 6000 units.

What is cost per unit?

Cost per unit refers to bot-h the variable costs and fixed costs associa-ted with producing and deliver-ing a single unit of any pro-duct to an end consumer. Moni-toring your cost of goods sold helps cre-ate context to set pricing and en-sure profit is gener-ated.

Solution:

let assume the un-its to be prod-uced by X.

then sa-les (20X)= variable cost (10X) + fixed cost (50000) + profit (10000)

20X = 10X + 50000 + 10000

X = 6000 units

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Direct labor is ______.

Answers

Direct Labour is the sum of money given to employees who are directly involved in the manufacturing of items. It varies in direct proportion to production level.

What distinguishes direct from indirect labour?

Only labour engaged in the manual production of products and services is regarded as direct labour, which is how direct labour differs from indirect labour. Indirect labour is the default classification for all other work.

Is the cost of direct material fixed?

A prime example of a variable cost is the price of direct materials. Remember that a fixed cost is one that keeps the same overall and reduces as a result per unit as the activity level rises.

What is an example of indirect labour?

The production manager, the buying staff, the material handling staff, the material management staff, and the quality control staff are a few examples of indirect labour employment.

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Integrated Potato Chips just paid a $1 per share dividend. You expect the dividend to grow steadily at a rate of 4% per year.
If you buy the stock and plan to sell it three years from now, what are your expected cash flows in (i) year 1; (ii) year 2; (iii) year 3?

Answers

1st yr - 1.04,  2nd yr - 1.08,   3rd yr - 1.12.

The entire quantity of money that enters and exits a business would be known as the cash flow. It serves as a crucial sign of how financially sound your company is. You could invest in new prospects, pay expenditures, and expand your firm with a steady, positive cash flow.

The expected cash flows is the dividend payable at a certain date in the future. To determine the value, we multiply the dividend at a certain time by the expected growth rate.

Year       Workings       Expected cash flows

1            1 × 1.04           = 1.04

2           1.04 × 1.04      =   1.08

3           1.08 × 1.04      = 1.12

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Following this weekend's attack on a Saudi oil field, a headline reads: "Oil prices to skyrocket reducing demand."
Respond to the two claims in the headline:
1) Are oil prices likely to rise? Why or why not?
2) Is demand likely to fall? Why or why not?

Answers

As regards the price of oil rising, the claim is true because the supply of oil would fall as a result of the attack on the Saudi oil field.

The demand is not likely to fall as oil is a highly demanded product which means that people will still demand it regardless of price.

How is demand affected by terrorist attacks?

When there is an attack on a company or organization that produces a certain good or service, there is a likelihood that supply would fall. This is simply because the company would likely be able to produce less than what it has been producing before. This would lead to less products available for more people and so prices would rise.

This is what would happen in the situation where there was an attack on a Saudi Oil Field. The Saudis would only be able to produce less oil which would then lead to a price increase in oil. However, the demand is not likely to fall from this increased price because oil is a highly demanded product by people across the world.

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Dr. Mark Scholz places an order to purchase $300 worth of supplies that he will use in his animal hospital over the next six months. The supplier's terms are COD (Cash on Delivery). Which accounting transaction below is correct?

Answers

The correct accounting transaction is below:

DR Supplies $300
CR Cash $300

What is an journal entry?

A journal entry is recorded when a transaction takes place, the company records each transaction of the company in accounts as journal entry, these entries are then converted into T-Accounts from which the trial balance is prepared which ultimately helps in the preparation of the Income Statement and Balance Sheet.

The entry that needs to be posted for the Dr. Mark Scholz's order is

DR Supplies $300

CR Cash $300

As the cash is paid on delivery so there will be one transaction recorded for the addition of the supplies as debit and the cash will be credited. This transaction will not include accounts payable because this is a cash transaction and not on credit.

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defining the problem gathering information evaluating information selecting the best option taking action Part A You are trying to decide what you want to major in during your college years. How should you go about making this decision?

Answers

When trying to decide the major you want in your college years, you should go about the decision by selecting the best option.

Deciding your college major?

To decide your college major, you need to apply the steps in the Decision - making process which are:

defining the problem gathering information evaluating information selecting the best option taking action

The first step would be to define the problem which is that you need to pick a college major that fit into your plans for life and that you would actually be interested in.

Then, you need to gather information of the various majors available. This is an exhausting step because you'll have to talk to your family and friends, attend college preparation fairs, talk to your guidance counselor, do research online etc.

Once you find out different majors, you then need to evaluate the information that you have to see how they fit into your plans. From this evaluation, you then select the best major for you or at least have a shortlist of 3 courses. Then take action by applying to colleges with these majors in mind.

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Why is the office critical to business success

Answers

In summary, business  service professionals may play three roles: customer satisfaction, productivity, and sales generation, which frequently leads to office role conflict and stress.

The primary function of an office setting is to assist its occupants in carrying out their duties. In an office, the work spaces are often used for traditional office tasks such as reading, writing, and the computer work. There are nine different sorts of work spaces, each of which supports a different business activity. Offices play an important role in the cooperation by providing a space for collective. As a group, ideas can be shared and developed more easily.

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Question 9 of 10
Governments can cause the supply of a good to decrease by:
OA. funding training related to making the good.
B. investing in new technology to produce the good.
C. reducing the taxes paid to make the good.
D. adding expensive regulations on the good.
SUBI

Answers

Answer:

D

Explanation:

hope this helps I'm not sure if it's correct

Please I need help with this exercise, I'm struggling so hard!

Based on this table from week 1 (Table2 attached).

-During the second week of business, the following transactions, all through the business bank account as appropriate, took place:

i. On 8 October M paid by cheque a quarter of the money owing on her payables account.

ii. On 11 October M paid by cheque £600 for two weeks’ rent for her business premises.

iii. On 11 October M paid by cheque £250 for two weeks’ insurance.

iv. By the end of the day on the 14 October (i.e. after two weeks of trade), M had made sales for £4,000. Fifty per cent of the sales had been in cash and the rest on credit. M had sold all her inventory after these two weeks of trade.

Using the new template below, demonstrate how the transactions in the second week will affect the expanded accounting equation (Assets = Capital + (Income – Cost of Sales – Expenses) + Liabilities. Your answer should include a summary total for each of the Assets, Capital, and Liabilities at the beginning of the second week, i.e. from your answer to part (a), as well as at the end of the same week.
(Template attached as TableToFollow).

Thank you sooo much!

Answers

A demonstration of how the transactions in the second week will affect the expanded accounting equation is as follows:

           Assets  = Capital + (Income – Cost of Sales – Expenses) + Liabilities

Balance from

Week 1 £16,430 = £14,930                                                               +    £1,500

1.                -375                                                                                         -375

2.              -600                                                                  £ -600

3.              -250                                                                     -250

4.            4,000                   £4,000

4.           -1,500                                          £1,500

Bal.     £17,705  = £14,930 + £4,000    -   £1,500     -      £850     +   £1,125

Bal.    £17,705  =  £16,580                                                             +   £1,125

What is the accounting equation?

The accounting equation is a statement that assets are always equal to capital or equity plus liabilities, given each business transaction.

Also known as the balance sheet equation, the accounting equation is the basis for the double-entry system of accounting.

Transaction Analysis:

1. Accounts Payable £375 Bank £375

2. Rent Expense £600 Bank £600

3. Insurance Expense £250 Bank £250

4. Cash £2,000 Accounts Receivable £2,000 Sales Revenue £4,000

4. Cost of goods sold £1,500 Inventory £1,500

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If a firm wants to know why valuable employess are leaving the company, it will conduct

Answers

It will conduct exit interviews. This will assist you in determining why your staff are departing for alternative chances. A firm is a for-profit commercial organisation that provides professional services, such as a corporation, limited liability company (LLC), or partnership.

When you characterise someone as firm, you mean they act in a way that indicates they are not going to change their views or that they are in control. She needed to be tough with him. 'I don't want to see you anymore.' A firm is a business that sells services and products for profit, typically professional services. A firm, on the other hand, is a business that engages in any revenue-generating activity that involves the selling of goods and services.

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Explain product life cycle

Answers

A product life cycle is the leng-th of time from a product first being intro-duced to consumers until it is removed from the mar-ket . A product’s life cycle is usual-ly broken down into 4 stages ; intro-duction, growth, maturity, and decline.

Product life cycles are used by manage-ment and marketing profes-sionals to help determine advert-ising schedules, price points, expans-ion to new product markets, packaging re-designs, and more. These strategic methods of support-ing a product are kno-wn as product life cycle manage-ment . They can also help deter-mine when newer products are ready to push old-er ones from the mark-et.

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Identify a product you use that have increased or decreased in supply recently. How did the change in supply affect the price? Try to show it on a graph.

Answers

Books and Audio Books are the products that have increased in supply recently. The price is much lower that its demand increased a lot leading to increase in supply to catch up the increasing demand.

Reason:

Nowadays, many online platforms and stores have apps that provide their consumers with incentives and prizes. With the help of the Libby app, you may typically access library books and podcasts from your phone for no cost. By logging in with their public library card, users can check out e-books.

As the supply for books has increased one can get books at cheaper prices than usual

Some sites provides free e-books, which results in tons of free books supply.

What is law of supply?

According to the law of supply, manufacturers will increase their supply to the market if the price is higher.

Businesses produce more of a good or service when they anticipate paying a greater price for it because they want to boost their revenue.

In the meanwhile, suppliers are discouraged from manufacturing as much if prices drop.

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Jansen Company’s general ledger showed a checking account balance of $25,020 at the end of May 2021. The May 31 cash receipts of $2,460, included in the general ledger balance, were placed in the night depository at the bank on May 31 and were processed by the bank on June 1. The bank statement dated May 31, 2021, showed bank service charges of $50. All checks written by the company had been processed by the bank by May 31 and were listed on the bank statement except for checks totaling $2,010. Required: Prepare a bank reconciliation as of May 31, 2021. [Hint: You will need to compute the balance that would appear on the bank statement.]

Answers

$24,520 is the balance in a bank reconciliation as of May 31, 2021.  The goal of this process is to determine the differences between the two and, as necessary, make changes to the accounting records.

What is the journal entry for bank reconciliation?

When there are changes to the balance on the books, journal entries are required in a bank reconciliation. These adjustments are the result of bank statement items that were not recorded in the company's general ledger accounts.

Given

Bank Balance = $25,020

Cash Receipts = -$2460

Bank Charges = - $50

Collection = + 2010

Bank balance after reconciliation = $24,520

Bank reconciliations are an important internal control tool for preventing and detecting fraud. They also aid in the identification of accounting and banking errors by explaining the differences between the cash balances on the accounting record and the bank balance position on the bank statement.

Thus, the balance of $24,520 is shown in the bank account.

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what are puts stock?

Answers

Put options are a type of option that increases in value as a stock falls. A put allows the owner to lock in a predetermined price to sell a specific stock, while put sellers agree to buy the stock at that price.

Options of the type also known as "puts" gains value as stock declines. With a put, the owner of a particular stock is able to lock in a predetermined selling price, and put sellers agree to purchase the shares at that price.

What are stock puts? Explain.

The buyer of a put option is granted the right, but not the responsibility, to sell the underlying securities at a predetermined price (often referred to as the strike price) before or on the predetermined expiration date. It is one of the two primary forms of options; a call option is the other type. On a variety of underlying assets, including stocks, currencies, and commodities, put options are traded. They safeguard against a decrease in such assets' value below a predetermined price.

If the option owner exercises their put option, the seller is obligated to buy the asset at the strike/offer price.

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