When purchasing this put option, the key factor is the price of the option here must be below the original purchase price for you to receive the payoff. If the price is above the original purchase price then you receive nothing for the option.

Highly touted and respected American Economist and former Chairman of the Board of Governors of the Federal Reserve from 1987 to 2006. Also, Chairman of the Fed’s principle monetary policymaking committee known as the Federal Open Market Committee (FOMC). Greenspan was the first person ever appointed to chair the Fed for five consecutive terms after his initial appointment by then President Ronald Reagan.

Accrual Accounting – Method within accounting in where expenses and income are accounted for as if they have already been earned or received. This form of accounting is considered standard practice for most companies.