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Diaries studies on college students show that:
Intrinsic Value
The actual, inherent value of a financial asset, determined through fundamental analysis without reference to its market value.
American Call Option
An option contract that gives the holder the right, but not the obligation, to buy a specified amount of an underlying asset at a predetermined price before or on a specified date.
Exercise Price
The predetermined cost at which the owner of an option can purchase (in the case of a call option) or sell (in the case of a put option) the underlying asset or commodity.
Conversion Ratio
The number of shares an investor receives when converting a convertible security, like a convertible bond or preferred stock, into common stock.
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