Distinguish Between the Exercise Price, the Strike Price and the Option

question 33

Essay

Distinguish between the exercise price, the strike price and the option premium.

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Definitions:

Negligence

A failure to behave with the level of care that someone of ordinary prudence would have exercised under the same circumstances.

Act of God

An event caused by natural forces beyond human control, such as floods, earthquakes, or hurricanes, which cannot be predicted or prevented.

Garage

A building or secured area designed for the storage of vehicles, typically part of a house or situated on residential property.

Bailment for Reward

A legal relationship where personal property is transferred from one party (bailor) to another (bailee) for a specific purpose, with compensation involved.