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Call Option
An agreement in finance which allows the purchaser to have the option, but not the commitment, to purchase a certain amount of a specific asset at a pre-agreed price during a fixed period.
Specified Price
A predetermined price set in a contract or agreement, often related to sales or financial instruments.
Perfect-Hedging
A risk management strategy that completely eliminates the risk associated with an investment by taking an equal but opposite position in the derivatives market.
Hedging
A risk management strategy used to offset potential losses or gains in an investment by taking an opposite position in a related asset.
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