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If the stock doesn't move, or rises, the option is worthless, and he loses money.
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Now Mr Hain's remarks suggest there may be political limits to covert increases in income tax through fiscal drag.If taxes have to rise, the option that would damage the economy least would be to levy them on spending rather than income.
If the price does not rise, the options become worthless.
If the share price does not rise, the options will never be exercised and the company will have paid for shares at prices that turn out to be high.
As shares rise, the options become more valuable.
As the stock price rose, the put options expired worthless and the calls reduced Dell's cost of buying almost 1 billion shares in recent years to about $10 a share, about a third the current market price.
As prices for all options rose, the chemical and bacterial options increased in preference, but when prices became high, preferences shifted again to the natural enemy option.
When the market price rises above the option price, the government loses money.
As the institutions' share of equities rises, so the option to sell declines and the case for raising a stink gets stronger.
The more a company's stock price rises above the option price, the higher the profit for employees.
As the numbers have risen and the options have narrowed, the city has been forced to look to expensive alternatives, like converted hotels and market-rate apartments.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com