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A crucial prevailing theme in this text is:
Maximum Loss
The highest possible amount an investment might lose.
Call Contract
A financial contract that gives the buyer the right, but not the obligation, to buy a specified amount of an asset at a predetermined price within a specified time period.
Write
In finance, to sell an option contract, effectively creating a new option in the market.
Call Option
A financial contract that gives the buyer the right, but not the obligation, to buy an asset at a specified price within a specified period.
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