Examlex
Which of the following is true about VPI?
Exercise Price
The cost at which the person holding the option has the right to purchase (in the case of a call option) or sell (in the case of a put option) the underlying asset.
Underlying Stock
This refers to the stock on which derivative contracts, such as options and futures, are based.
American Call
A type of call option that can be exercised at any time before its expiration date.
European Call
An option contract that gives the holder the right, but not the obligation, to buy a specific asset at a specified price within a fixed period, applicable only at the expiration date.
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