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Why is it useful to view research as the behavior of scientists?
Call Option
A financial contract giving the buyer the right, but not the obligation, to buy a stock, bond, commodity, or other asset at a specified price within a specified time.
Black-Scholes
A mathematical model used to estimate the theoretical price of European put and call options, considering factors such as risk-free rate, volatility, and time.
Instantaneous Risk-free Rate
The theoretical rate of return of an investment with no risk of financial loss, typically considered as a very short-term government bond yield.
Hedge Ratio
The ratio of the size of a position in a hedging instrument to the size of the position being hedged.
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