Power put option
= Power put option
{title2=$g_n(S)=(K-S)_+^n$}
A power put has <financial payoff> $(K-S)^n$ below the <strike price> $K$ and zero at or above it, where $n$ is a positive <integer>. For $n=1$ this is the ordinary <put option>. For every $n\geq1$ the payoff is decreasing and is a <convex function> of the <stock> price. A <European option> permits exercise only at expiry; a <perpetual power put option> permits exercise at any finite time without a fixed expiry.