An investor who buys a put warrant expects that the price of the underlying instrument will fall during the exercise period. Thus, he acquires the right to sell a particular quantity of the security in question at an agreed-upon price, either at any time during the exercise period (American-style) or on the expiration date (European-style). The put writer is obligated to buy the underlying instrument at this price, and in return receives a premium from the put holder. However, most warrants are settled in cash rather than through the physical delivery of the underlying security.