Examlex
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Convertible Bond
A type of bond that can be converted into a predetermined number of the issuer's equity shares at certain times during its life, according to the terms of the bond.
Put Option
An agreement in finance that allows the purchaser the option, without being compelled, to sell a predetermined quantity of a basic asset at an agreed price before a certain deadline.
Call Option
A legally binding financial document that provides the acquirer the potential, albeit without the obligation, to invest in a range of assets including equities, debts, or raw materials at a price set in advance, and within an agreed period.
Exercising The Option
The act of buying or selling the underlying asset via the option contract.
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