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Modern ATM machines are an automated example of a service design that
Present Value
The current value of a future sum of money or stream of cash flows, discounted at a specified rate of return.
At-the-money
A term used in options trading to describe a situation where the option's strike price is identical to the current market price of the underlying asset.
Call Option
A financial contract that gives the buyer the right but not the obligation to buy a stock, bond, commodity, or other asset at a specified price within a specific time period.
Dynamic Hedging
A strategy of managing risk that involves adjusting the number of derivatives used as financial instruments in proportion to the changing value of the underlying asset.
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