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Exercise Price
The specified price at which an option holder can buy (in a call option) or sell (in a put option) the underlying asset.
Leveraged Firm
A company that uses a high level of debt to finance its operations.
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.
Bond
A fixed income instrument that represents a loan made by an investor to a borrower, typically corporate or governmental.
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