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European Call
An option contract giving the holder the right, but not the obligation, to buy a specified asset at a predetermined price on or before a specific expiration date, only exercisable on the expiration date.
Net Profit
The amount of income that remains after subtracting all expenses, taxes, and costs from total revenue.
Convertible Bond
A type of bond that can be converted into a predetermined number of the issuer’s equity shares at certain times during its life.
Discount Rate
The rate used to calculate the present value of future cash flows.
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