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Investments glossary

Boundary Conditions


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Quotes of the day:

Truth may be stretched, but cannot be broken, and always gets above falsehood, as oil does above water.

— Miguel de Cervantes

Boundary conditions are the maximum and minimum values used to indicate where the price of an option must lie. Boundary conditions are used to estimate what an option may be priced at, but the actual price of the option may be higher or lower than what is set as the boundary condition.


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