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If,for a $1000 premium,you buy a $100,000 call option on bond futures with a strike price of 110,and at the expiration date the price is 114,your ________ is ________.
Sunk Costs
Expenses that have already been incurred and cannot be recovered or refunded.
Capital Investment
Funds invested in a business or enterprise with the intention of furthering its business objectives.
Capital Budgeting
The process of evaluating and selecting long-term investments compatible with the firm's goal of wealth maximization.
NPV
Short for Net Present Value, which is a financial metric used to evaluate the profitability of an investment or project, considering the time value of money.
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