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Graph the ordered pairs and
on the same axes.
Risk-Free Rate
The theoretical rate of return of an investment with zero risk of financial loss, often represented by the yield on government bonds.
Option
A contract that gives its owner the right to buy or sell some asset at a fixed price on or before a given date.
European Option
Option that can be exercised only on the expiration date.
Expiration Date
The last day on which an option can be exercised.
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