Trading Basics
American Option
An option that can get exercised at any time during its life.
European options can only be exercised at the end.
Other Trading Basics
Commodities
A commodity is a basic good where the quality of the product won’t differ depending on where it’s sourced.
Commercial Paper
How big companies finance short-term cash flow.
Like bonds but without the coupon, instead, the APR is determined by the discount the agreements are entered into and the length of time to repayment.
For example, a blue chip company might borrow $9.95m dollars today and repay $10m in a month’s time.
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