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Underlying Asset
The financial asset upon which a derivative's price is based, such as stocks, bonds, commodities, or currencies.
Conversion Price
The predetermined price at which convertible securities can be exchanged for another form, typically common stock.
Convertible Bond
A type of bond that can be converted into a specified number of shares of the issuing company's stock at certain times during its life, usually at the discretion of the bondholder.
Par Value
The face value of a bond or stock as stated by the issuing company, which does not necessarily coincide with its market value.
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