Examlex
A manager chooses to ignore a rigorous decision-making process and selects TV monitor A over monitor B because he "trusts" company A more than company B.If the decision he made was rational, which of the following is true?
Exercise Price
The fixed price at which the holder of an options contract can buy (in the case of a call) or sell (in the case of a put) the underlying security or commodity.
ESOs
Employee Stock Options; rights granted to employees to purchase a company's stock at a predetermined price for a specific period.
Convertible Bond
A bond that can be exchanged for a fixed number of shares of stock for a specified amount of time.
Upside Potential
The estimated amount by which a security’s market price or value could rise, representing the opportunity for profit.
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