Examlex
How can your audience's level of understanding help you determine the appropriate amount of information to include in a business message?
Hedge Ratio
The ratio of the size of a position in a hedging instrument to the size of the position being hedged.
Strike Price
The price at which the holder of an option contract has the right to buy or sell the underlying asset.
Underlying Stock
The stock on which a derivative instrument, such as an option or future, is based.
Implied Volatility
A measure of the market's forecast of a likely movement in a security's price and is used to price options contracts.
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