Examlex
What are the two options for increasing profits in a small Internet-based company? Which path would you choose for a struggling unique, artsy, designer t-shirt company? Justify your answer with specific details and examples.
Put Option
An economic arrangement empowering the bearer with the right, albeit without the obligation, to sell a defined amount of a principal asset at a determined price within a set duration.
Call
An option contract that gives the holder the right, but not the obligation, to buy a specified amount of an underlying asset at a specified price within a specified time.
Put Option
An agreement that grants the holder the option, without the requirement, to sell a predetermined quantity of a fundamental asset at an agreed-upon price during a defined period.
Forward Contracts
Customized contracts between two parties to buy or sell an asset at a specified price on a future date, used for hedging or speculation.
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