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When planning a sponsorship or event marketing program, the final essential ingredient or step is to:
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.
Black-Scholes Option Pricing Model
A mathematical model used for pricing European call and put options based on variables such as asset price, strike price, volatility, interest rate, and time to expiration.
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