Examlex
How does this work reflect the interests of its patron?
Underlying Asset
The security or asset on which a derivative contract is based, influencing its value and characteristics.
Exercise Price
The predetermined price at which an option's underlying asset can be bought or sold.
Put Option
A put option is a financial contract that gives the holder 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 (in case of a call option) or sell (in case of a put option) the underlying asset.
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