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Recall the Application about the decrease in taxes on cigarettes in several Canadian provinces in 1994 to answer the following question(s) .
-Recall the Application. The change in demand for cigarettes resulting from the decrease in taxes would normally create, ceteris paribus,
American Options
A type of options contract that allows the holder to exercise it at any time before the expiration date.
Call Option
A financial contract giving the buyer the right, but not the obligation, to purchase a stock, bond, or other instrument at a specified price within a specific time period.
Put Option
A financial contract that gives the holder the right, but not the obligation, to sell a specified amount of an underlying asset at a predetermined price within a specified time frame.
Fixed Price
A predetermined price at which goods and services are sold, not subject to change based on fluctuations in market demand or supply.
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