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The school district negotiator notes during contract negotiations with the teachers' union that the district cannot afford a 3% wage increase.The district negotiator presents the current expenditure budget,the projected tax revenue and state contributions,and the currently increasing unemployment rate in the community's tax base as evidence of the lack of extra money for the increases.The district negotiator is attempting to convince the teachers' negotiator to pull back his demands using
Put Option
A financial contract giving the holder the right, but not the obligation, to sell a specified amount of an underlying asset at a predetermined price within a specific time frame.
Market Value
The present cost at which a product or service is available for purchase or sale in the market.
Exercise Price
The specified price at which an option's holder can buy (call option) or sell (put option) the underlying security or commodity.
Stock Price
The cost of purchasing a share of a company's stock on the open market, dictated by supply and demand dynamics.
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