List the Common Applications of Convergence

question 54

Essay

List the common applications of convergence.

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Definitions:

Exercise Price

The fixed price at which the holder of an options contract can buy (in the case of a call) or sell (in the case of a put) the underlying security or commodity.

ESOs

Employee Stock Options; rights granted to employees to purchase a company's stock at a predetermined price for a specific period.

Convertible Bond

A bond that can be exchanged for a fixed number of shares of stock for a specified amount of time.

Upside Potential

The estimated amount by which a security’s market price or value could rise, representing the opportunity for profit.