Examlex
Identify and differentiate the two major compensation philosophies.
Strike Price
The set price at which the holder of a financial instrument can buy or sell the underlying asset in options trading.
Call Option
A financial contract giving the buyer the right, but not the obligation, to buy an asset at a specified price within a particular time period.
Out-Of-The-Money
A term used to describe an option contract that would not result in a profit if exercised at the current market level.
Convertible Bond
A type of bond that can be converted into a predetermined amount of the company's equity, usually at the option of the bondholder.
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