Aqua,Inc.had the following shareholders' equity section on its December 31,2011 balance sheet:
Definitions:
Equilibrium
A state in a market where supply equals demand, leading to stable prices and quantities.
Strike Prices
The predetermined prices at which the holder of an option can buy (call option) or sell (put option) the underlying asset.
Exercise Price
The Exercise Price, also known as the strike price, is the price at which the holder of an option contract can buy (in the case of a call option) or sell (in the case of a put option) the underlying asset or security.
Risk-Free Rate
The hypothetical rate of return on an investment with no risk of financial loss, often represented by the yield on government securities.
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