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Grounded theory:
Risk-free Interest Rate
The return on investment with no risk of financial loss, typically represented by government bonds.
Stock Price Volatility
This term describes the degree of variation of a trading price series over time as measured by the standard deviation of returns.
Intrinsic Value
The inherent worth of a financial asset, determined through fundamental analysis without reference to its market value.
Strike Price
The specified price at which the holder of an option can buy (in the case of a call option) or sell (in the case of a put option) the underlying security or commodity.
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