What Is the Definition of the Following Term

question 101

Short Answer

What is the definition of the following term:
-jiao:

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Definitions:

Premium

The amount by which the price of a security, especially a bond or insurance policy, exceeds its principal amount or face value.

American-Style Option

A type of options contract that can be exercised at any time before expiration, offering more flexibility than European-style options.

European-Style Option

An option contract that can only be exercised on its expiration date, not before.

Call Option

A financial contract that gives the buyer the right, but not the obligation, to buy an asset at a specified price (strike price) within a specific time period.