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The t-test has four test assumptions.
Strike Price
The determined price point where the possessor of a call option has the right to buy, or in a put option scenario, to sell the asset in question.
Put Option
A financial contract giving the buyer the right, not the obligation, to sell an asset at a specified price within a specified time.
Market Price
The present cost at which a good or service can be purchased or sold.
Call Option
A financial contract giving the buyer the right, but not the obligation, to buy a stock, bond, commodity, or other assets at a specified price within a specific time frame.
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