Examlex
When a firm uses premium pricing, it sets lower prices for everyday items such as toothpaste that consumers purchase frequently.
Strike Price
The predetermined price at which an option's holder has the right to purchase (for a call option) or sell (for a put option) the underlying asset.
Option
An option is a financial derivative that gives the holder the right, but not the obligation, to buy or sell an asset at a predetermined price within a specified timeframe.
European Call Option
A financial contract that gives the buyer the right, but not the obligation, to buy a certain asset at a specified price (strike price) on a specified date.
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