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Risk-Free Interest Rate
The return on an investment that is guaranteed, with no risk of financial loss, typically associated with the most secure government bonds.
Strike Price
The specified price at which the buyer of an option can buy (call) or sell (put) the underlying security or commodity.
Put Options
Options contracts that give holders the right, but not the obligation, to sell a specified amount of an underlying asset at a set price within a specified time.
Exercise Price
The predetermined price at which the holder of an option can buy (for a call option) or sell (for a put option) the underlying asset.
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