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How does a DHCP server dynamically assign IP addresses to hosts?

Addresses are permanently assigned so that the host uses the same address at all times.

Addresses are assigned for a fixed period of time. At the end of the period, a new request for an
address must be made, and another address is then assigned.

Addresses are leased to hosts. A host will usually keep the same address by periodically contacting
the DHCP server to renew the lease.

Addresses are allocated after a negotiation between the server and the host to determine the
length of the agreement.

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