Why Would a Company Create a Knockoff of a Product

question 79

Essay

Why would a company create a knockoff of a product?

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Definitions:

Asset

An asset is a resource with economic value that an individual, corporation, or country owns or controls with the expectation that it will provide future benefit.

American Option

Call or put option that can be exercised on or before the expiration date.

European Option

A type of options contract that allows the holder to exercise the option only on its expiration date.

Underlying Asset

An asset on which a derivative instrument, such as an option or futures contract, is based, determining its value and performance.