Examlex
A 35-year-old individual named Manny has recently formulated an elaborate plan to cure AIDS with vitamin therapy. To provide funding for this cause, he has withdrawn all the money from his bank account and purchased thousands of jars of vitamins and small boxes in which to put them. When he appeared at a hospital emergency room loudly demanding names of patients with AIDS, he himself was hospitalized for psychiatric observation. What is your diagnosis of Manny?
European Options
Financial derivatives that give the holder the right, but not the obligation, to buy or sell an asset at a specified price only on the option's expiration date.
Conversion Price
The price per share at which a convertible security, such as convertible bonds or convertible preferred stock, can be converted into common stock.
American Option
A type of options contract that allows the holder to exercise the option at any point up to and including the expiration date.
European Option
A variety of option agreement that is exercisable solely on its expiry date, with no possibility of earlier execution.
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