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Option price

Definition:

Also called the option premium; the price the buyer of the options contract pays for the right to buy or sell a security at a specified price in the future.

Investing Essentials


Copyright © 2011 Campbell R. Harvey, Professor of Finance, Fuqua School of Business at Duke University

Term of the Day

Laffer curve

A curve conjecturing that economic output will increase if marginal tax rates are cut. Named after economist Arthur Laffer.

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