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Derivatives

American-Style Option

This type of contract provides flexibility for the holder to take advantage of the underlying asset's price movements.

Let's dive into a fascinating aspect of finance - options contracts. These contracts allow the holder to exercise the contract anytime between the date of purchase and the expiration date. This unique feature gives the holder the flexibility to capitalize on the price movements of the underlying asset. In simpler terms, options contracts provide the opportunity to buy or sell assets at a predetermined price within a specific time frame. This can be a powerful tool in managing risk and maximizing profits in the ever-changing financial landscape.

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