Examlex
What is being used by a store owner who sends out a text message to her preferred customers announcing the arrival of this season's new clothing?
Underlying Stock
The basic security or asset upon which derivative contracts, such as options and futures, are based.
Exercise Price
The predetermined price at which an option can be exercised, allowing the holder to buy or sell the underlying asset.
Risk-Free Rate
The theoretical rate of return of an investment with zero risk, often represented by the yield on government bonds.
Inflation Rate
The percentage increase in the price level of goods and services in an economy over a period of time.
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