Examlex
Instructions: Identify the terms and briefly state their historical significance.
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Price Risk
This refers to the possibility of an investor experiencing losses due to changes in the market price of a security.
Hedge
Hedging involves making an investment to reduce the risk of adverse price movements in an asset, typically by taking an offsetting position in a related security.
Put Option
An option contract giving the owner the right, but not the obligation, to sell a specified amount of an underlying asset at a set price within a specified time.
Interest Rate
The percentage of a sum of money charged for its use, often expressed on an annual basis.
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