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In how many area ratios are grouped
Ratios can be grouped into 3 main areas:
1 Performance - how well business has done (profitability)
2 Position - short term standing of business (liquidity)
3 Potential - what the future holds for business
Compound options are usually cheaper than vanilla options and we know that there are four main types of compound options: a call on a call; a put on a call; a call on a put; a put
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