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If the actual unemployment rate is equal to the NAIRU,then
Option Value
The premium that investors are willing to pay for the possibility of higher returns associated with holding an options contract.
Intrinsic Value
The inherent worth of an asset, often calculated based on fundamentals, without reference to its market value.
Time Premium
The portion of an option's price that exceeds its intrinsic value, representing the extra amount paid for the possibility that the stock’s price will move before expiration.
Minimum Floor Value
The least possible value guaranteed for a specific financial instrument or investment.
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