TARGET MARGIN Definition

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TARGET MARGIN is the desired profit on each sale; used to determine the selling price where the average total cost is known.

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INSTALLMENT SALE is selling property and receiving the sales price over a series of payments, instead of all at once at the close of the sale, is an installment sale. As the seller, unless you elect out, you will report the gain on that transaction as you receive it through the series of payments. As the buyer, you will usually pay interest on the unpaid balance.

AT THE MONEY is an option where the strike price is approximately equal to the underlying price.

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