The Terms 2/10, Net/30 Mean That a 2 Percent Discount

question 189

True/False

The terms 2/10, net/30 mean that a 2 percent discount is allowed on payments made within the 10 days discount period.

---

Definitions:

Exercise Price

The predetermined price at which the holder of an option can buy (call) or sell (put) the underlying asset.

Split Factor

A term used in finance to describe the ratio by which a company's existing shares are divided into a larger number of shares, affecting a stock's price by making it more affordable without changing the company's market capitalization.

American Call Option

A type of call option that can be exercised at any time up to the expiration date, giving the holder the right to buy the underlying security at the strike price.

Exercise Price

The cost at which an option's holder has the right to purchase or sell the asset underlying the option.