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When is convertible term life a good idea?
American Put
An option contract giving the holder the right, but not the obligation, to sell a specified amount of an asset at a predetermined price before or on a specified expiration date.
European Call
An option contract that allows the holder to buy the underlying asset at a specific price only on the expiration date.
American Option
A type of options contract that allows the holder to exercise the option at any time before and including its expiration date.
Expiration Date
The specified date on which an option, futures contract, or other derivative ceases to exist.
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