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Differentiate between an initiator firm and a target firm. Are these static roles?
Underlying Asset
The financial asset upon which a derivative's price is based, including stocks, bonds, commodities, currencies, interest rates, and market indexes.
European Put Option
A financial contract that gives the holder the right, but not the obligation, to sell a specified amount of an underlying asset at a predetermined price before or at a specified expiration date.
Underlying Asset
An asset over which options or other derivative instruments are based, which can include stocks, bonds, commodities, or currencies.
Exercise Price
The price at which the holder of an option can buy or sell the underlying security, as specified in the option contract.
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