Examlex
A contingency question really has three questions that all must be answered.
Option Premium
The price paid by the buyer of an options contract to the seller, representing the cost of acquiring the option.
Exercise Price
The price at which the holder of an option can purchase (or sell) the underlying security, such as a stock.
Net Profit
The amount of money left over from revenues after all expenses have been deducted, representing the actual profit of a business.
Convertible Bond
A fixed-income debt security that the holder can convert into a specified number of shares of common stock in the issuing company.
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