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-Assume that the market is originally at point W.Movement to point Y is a combination of
Stock Volatility
The rate at which the price of a stock increases or decreases for a given set of returns.
Stock Price
The cost of purchasing a share of a company, which fluctuates based on market conditions, demand, and other economic factors.
Time To Expiration
The period that remains before a contract, such as an option or futures contract, reaches its maturity date and is either exercised or expires worthless.
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