|
|
Cover |
|
|
|
 Home Site Map Add Term Search About Us Contributors |
CoverTo use the forward market to protect against exchange risk. Typically, an importer with a future commitment to pay in foreign currency would buy it forward, and exporter with a future receipt would sell it forward, and a purchaser of a foreign bond would sell forward the expected proceeds at maturity. See hedge.CoverThe purchase of a contract to offset a previously established short position.CoverThe details of insurance provided by an insurance company to a policyholder.Sometimes cover is used as shorthand for 'dividend cover' - see separate definition of this term.Similar MatchesCoveredCoveredA written option is considered to be covered if the writer also has an opposing market position on a share-for-share basis in the underlying security. That is, a short call is covered if the underlying stock is owned, and a short put is covered (for margin purposes) if the underlying stock is also short in the account. In addition, a short call is covered if the account is also long another call on the same security, with a striking price equal to or less than the striking price of the short call. A short put is covered if there is also a long put in the account with a striking price equal to or greater than the striking price of the short put. Covered interest rateCovered interest rateThe covered interest rate, in a currency other than your own, is the nominal interest rate plus the forward premium on the currency; thus the percent you will earn holding the foreign asset while protecting against exchange-rate change by selling the foreign currency forward. Covered positionCovered positionUse of an option in a trading strategy in the underlying asset is already owned. Uncovered Put writingUncovered Put writingA short put option position in which the writer does not have a corresponding short position in the underlying security or has not deposited, in a cash account, Covered optionCovered optionOption position that is offset by an equal and opposite position in the underlying security. Antithesis of naked option. Further Suggestionsrecovery sharesCash flow coverage ratio Short covering covered writing covered straddle Initiate coverage extended coverage European Recovery Program Financial Institutions Reform, Recovery and Enforcement Act of 1989 (FIRREA) Modified Accelerated Cost Recovery System (MACRS) Recovery Covered or hedge option strategies Rally (recovery) covered warrant Asset coverage test Uncovered options Covered interest arbitrage Guaranteed replacement cost coverage insurance Debt service coverage uncovered Forward cover Bid to cover ratio Covering Covered Interest Rate Parity Covered writer |
|
|
|