Which Structure Generally Gives Greater Certainty to the Target's Shareholders

question 24

Multiple Choice

Which structure generally gives greater certainty to the target's shareholders in terms of value received?

• A)Floating exchange ratio
• B)Fixed exchange ratio
• C)They both are the same
• D)It depends on the terms

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Definitions:

Expiration Date

In finance, it typically refers to the last day on which options or futures contracts are valid.

Value Decrease

A reduction in the worth or market value of an asset or investment over time.

American Call Option

A type of call option that can be exercised at any time before its expiration date, allowing the holder to buy the underlying asset at the specified strike price.

Exercise Price

The specified price at which the option holder can buy (call option) or sell (put option) the underlying asset or security when exercising their option.