Examlex
The top management role in organization effectiveness involves examination of the internal situation which includes:
Underlying Stock
Underlying stock refers to the stock upon which a derivative contract, such as an option or futures contract, is based.
Black Scholes Model
A mathematical model used for pricing European call and put options, evaluating the options' theoretical value based on several factors including time, price, volatility, and the risk-free interest rate.
Exercise Price
The price at which the holder of an option can buy (for a call option) or sell (for a put option) the underlying asset.
Standard Deviation
A measure of the dispersion or variation in a set of values, indicating how much the numbers in the set deviate from the mean (average).
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