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Briefly explain how the option pricing model can be used for pricing risky debt.
Optic Nerve
Twin nerves that convey sight-related information from the retina to the brain.
Retina
A layer at the back of the eyeball containing cells that are sensitive to light and that trigger nerve impulses that pass via the optic nerve to the brain.
Wavelength
The distance between two consecutive crests or troughs in a wave, typically used in the context of electromagnetic waves such as light, sound, and radio.
Colors
The aspect of things that results from the light they emit or transmit, giving them a characteristic appearance in terms of hue, saturation, and brightness.
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