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Option's Price
The price at which a specific derivative contract can be exercised, determined by factors like the underlying asset's price, time to expiration, and volatility.
Volatility
The rate at which the price of a security increases or decreases for a given set of returns.
Time Value
The idea that having money now is more valuable than having the same amount later on because of its ability to generate earnings over time.
Strike Price
The specified price at which the buyer of an option can buy (call option) or sell (put option) the underlying asset.
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