Appendix

Basic Notions

Call option. A standard contract which gives its buyer the right (without imposing any obligations) to buy a certain underlying asset at a specific point in time in the future (see expiration date) for a fixed price (see strike price).

Put option. A standard contract which gives its buyer the right (without imposing any obligations) to sell a certain underlying asset at a specific point in time in the future (see expiration date) for a fixed price (see strike price).

Strike price. The price, settled in a contract, at which the option buyer can realize his right to buy or sell the underlying asset.

Expiration date. The date, settled in a contract, before which (see American option) or at which (see European option) the option ...

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