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Draw a supply and demand diagram. Label the equilibrium price and equilibrium quantity as well as the axes and curves.
American Call Option
A type of call option that can be exercised at any time up to the expiration date, giving the holder the right to buy the underlying security at the strike price.
Exercise Price
The cost at which an option's holder has the right to purchase or sell the asset underlying the option.
Expiration Date
The last day on which an option or derivative contract is valid, after which it either becomes worthless or is automatically settled.
American Put Option
A derivative security that gives the holder the right, but not the obligation, to sell a specified quantity of an underlying asset at a set price within a specified time.
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