Put Option  

A put option allows the holder of a bond to put, or present, the bond to an issuer (or trustee) and demand payment at a stated time before the final stated maturity of the bond.

Remarks: Bond funds including mutual funds (open-end and closed-end, actively managed and indexed), exchange-traded funds and unit investment trusts offer a convenient and affordable way to invest in a diversified portfolio of bonds, but a bond fund investment can differ from a bond investment in ways that are important to understand.