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Call Option
An economic agreement that provides the bearer the option, without the necessity, to purchase a share, bond, commodity, or different asset at an agreed-upon price during a determined timeframe.
Derivative Security
A financial security whose value is determined by or derived from an underlying asset or group of assets, such as stocks, bonds, commodities, or market indices.
Fixed Price
A contractually agreed-upon price for goods or services that is not subject to any changes in cost.
Risk-Free Rate
The theoretical rate of return on an investment with zero risk, often represented by the yield on government securities.
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