Examlex
What do nodes in an influence diagram represent?
Put Option
A financial contract giving the holder the right, but not the obligation, to sell a specified amount of an underlying asset at a set price within a specific time.
Option Buyer
An individual or entity that acquires the rights, but not the obligation, to buy or sell an asset at a predetermined price within a specific time frame.
Option Writer
An individual or entity that creates and sells options, thus assuming the risk of having to buy or sell the asset at the option's strike price if the option is exercised.
Conversion Value
The financial worth of converting a convertible security into its underlying shares, calculated based on the current price of the shares.
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