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Why does scarcity lead to the what,how,and for whom questions?
Stock Options
Contracts that give the investor the right, but not the obligation, to buy or sell a stock at a specified price before a certain date.
Traded
The act of buying or selling securities, commodities, or other financial instruments on financial markets.
Put-Call Parity
A fundamental principle in options pricing that establishes a specific relationship between the prices of European put and call options with the same strike price and expiration date.
European Put Option
A financial contract that gives the holder the right, but not the obligation, to sell an underlying asset at a specified price on the expiration date.
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