Examlex
Your company wants to use an IoT device but wants to make sure it does not interfere with other RF devices that use the 2.4 GHz RF band. The company also wants the device to be at least 50 meters away from the base station.
What type of device should the company purchase?
Call Option
A financial contract that gives the buyer the right, but not the obligation, to buy an asset at a specified price within a specific time period.
Underlying Stock
Underlying stock refers to the stock upon which a derivative contract, such as an option or futures contract, is based.
Black Scholes Model
A mathematical model used for pricing European call and put options, evaluating the options' theoretical value based on several factors including time, price, volatility, and the risk-free interest rate.
Exercise Price
The price at which the holder of an option can buy (for a call option) or sell (for a put option) the underlying asset.
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