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Dave is an HR manager who is attempting to introduce a new coaching program into his organisation.He is aware that John,an executive manager,highly values the development of leadership qualities within his staff. If Dave appeals to John by suggesting that the coaching program can be of great assistance in developing leadership,Dave is using:
Implicit Call Option
An option embedded in an investment that gives the holder the right but not the obligation to undertake certain actions under specific conditions.
Convertible Bond
A type of bond that can be converted into a predetermined number of shares of the issuing company's equity at certain times during its life, usually at the discretion of the bondholder.
New Shares
New shares refer to additional stock issued by a company, either through public offerings or other means, to raise capital.
Put Option
A financial contract that gives the owner the right, but not the obligation, to sell a specified amount of an underlying security at a predetermined price within a specified time frame.
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