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Put Option
A financial contract giving the option buyer the right, but not the obligation, to sell a specified amount of an underlying asset at a set price within a specified timeframe.
Paying Off Debt
The process of fully repaying borrowed money, including principal and interest, to creditors.
Common Stock
A type of security that represents ownership in a corporation, entitling the holder to vote on corporate matters and receive dividends.
Levered Firm
A company that uses debt financing in addition to equity in its capital structure, amplifying both potential gains and losses.
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