Fill in the correct labels for the following figure using the word bank below.
-A ____________
Definitions:
Strike Price
The predetermined price at which the holder of a options contract can buy (in the case of a call option) or sell (in the case of a put option) the underlying asset.
Call Contract
An agreement that gives the holder the right, but not the obligation, to buy a specified amount of an underlying asset at a predetermined price within a specific time frame.
Bushels Of Corn
A unit of measure used in the US for trading and valuing corn, with one bushel equivalent to 56 pounds.
Option Contract
A financial derivative that represents a contract sold by one party to another, offering the buyer the right, but not the obligation, to buy (call) or sell (put) a security at an agreed-upon price within a certain period of time.
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