The Purpose of ________________ Is to Align Company and Employee

question 96

Short Answer

The purpose of ________________ is to align company and employee interests by making employees owners.

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Definitions:

Put Option

A financial contract giving the holder the right, but not the obligation, to sell a specific amount of an underlying asset at a set price within a specific period.

Call Option

A financial contract giving the buyer the right, but not the obligation, to purchase an asset at a specified price within a certain period.

Stock Price

Stock price is the cost of purchasing a share of a company's stock, reflecting the market's valuation of the company at any given time.

Hedge Ratios

Ratios used to optimize hedging strategies by comparing the quantity of a position protected against the total position size.