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Obligation To Sell
A commitment or requirement to sell an asset or security, often arising from a contractual agreement.
Protective Put
An investment strategy where an investor buys a put option for an asset they own to hedge (protect) against a potential drop in the asset's price.
Riskless Asset
An investment with a certain rate of return and no risk of default, often represented by treasury bills or similar government securities.
Exercise Price
The price at which the option holder can buy (call option) or sell (put option) the underlying asset.
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