Examlex
The value of a mortgage-backed security is something that was tied to the overall market for American homes.
Underlying Asset
A financial asset or instrument upon which a derivative’s price is based, including stocks, bonds, commodities, or currencies.
Call Option
A financial contract that gives the holder the right, but not the obligation, to buy a stock or other asset at a specified price within a certain period.
Put Option
A financial contract giving the option buyer the right, but not the obligation, to sell a specified amount of an underlying asset at a set price within a specified timeframe.
Paying Off Debt
The process of fully repaying borrowed money, including principal and interest, to creditors.
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