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Floored Put
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Payout of a Floored Put A put position with a maximum payout limited by the terms of the contract- analogous to a bearish vertical put spread and similar in form to a reverse equity risk reversal. The terms on which the floor provision comes into effect will vary considerably by market and should be checked carefully. A put CAPS with its 'exploding' early exercise price trigger is a variety of floored put. Compare with Capped Call, Corridor (1) (diagram). Also called Limited Put.
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