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Considering a Call Option, If the Price of the Underlying

question 54

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Considering a call option, if the price of the underlying asset decreases:


Definitions:

Net Markups

This term refers to the difference between the cost of a product and its selling price, minus any discounts or allowances.

Net Markdowns

The reduction in the selling price of goods, subtracted from the original or previous selling price, often to clear surplus inventory.

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