A very brief introduction to options
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A NIL-PAID right can be thought of as being akin to a financial option.
Options are contracts that give you the right, but not the obligation, to buy ("call option") or sell ("put option") an underlying asset at a certain price ("strike price") at a date that can be fixed ("European-style") or any time up till the expiration date ("American-style").
There are many ways to value how much an option is worth. Two that crop up are the binomial and Black-Scholes methods.
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