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Inga and Neil are scheduled to move into their new house tomorrow, but their realtor calls to tell them that the previous owners turned off the heat, which caused several of the water pipes to burst. Since the house is temporarily uninhabitable, Inga and Neil decide that they can put their belongings in storage and stay with Neil's parents while the repairs are made. They ask the realtor to arrange repairs at the previous owner's expense. Though they are disappointed that they won't be able to entertain for the holidays, they know they will be able to do it next year. By assessing their resources to cope with the situation, Neil and Inga have engaged in a
Underlying Stock
Refers to the basic stock that an options or futures contract is based upon.
Options
Financial derivatives that give the buyer the right, but not the obligation, to buy or sell an underlying asset at an agreed-upon price within a certain period.
Held
When securities are retained in an investment portfolio without being sold.
Financial Engineering
Creating and designing securities with custom-tailored characteristics.
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