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Subtract as indicated, and express your answer in lowest terms.
Option Contract
A financial derivative contract that gives the buyer the right, but not the obligation, to buy or sell an asset at a specified price within a specified time frame.
Underlying Asset
The financial asset upon which a derivative's price is based, such as stocks, bonds, commodities, or currencies.
Conversion Price
The predetermined price at which convertible securities can be exchanged for another form, typically common stock.
Convertible Bond
A type of bond that can be converted into a specified number of shares of the issuing company's stock at certain times during its life, usually at the discretion of the bondholder.
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