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Nominal exercise price |
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Nominal exercise priceThe exercise price of a GNMA option contract, which equals the unpaid principal balance multiplied by the adjusted exercise price.Nominal exercise price Similar MatchesExercise valueExercise valueThe amount of advantage over a current market transaction provided by an in-the-money option. Exercise priceExercise priceThe price at which an option or warrant holder can buy or sell the underlying instrument (for example, shares, an index, commodities etc). Also known as the strike price.The price at which a new issue of shares is sold to investors where the issue has taken place as a tender offer. The exercise price is calculated as the maximum price at which all the shares being issued can be sold, bearing in mind the bids put in by investors. European style exerciseEuropean style exerciseA method of exercising options contracts in which the buyer can exercise the contract on the last day before expiration. Adjusted exercise priceAdjusted exercise priceTerm used in options on Ginnie Mae (Government National Mortgage Association) contracts. The final exercise price of the option accounts for the coupon rates carried on Ginnie Mae mortgages. For example, if the standard GNMA mortgage has an 9% yield, the price of GNMA pools with 13% mortgages in them is altered so that the investor receives the same yield. Exercise noticeExercise noticeA formal notice to the writer of an option from a clearing house that an option has been exercised by an option holder and that the writer is obliged to buy/sell the underlying instrument at the exercise price to meet his/her obligations. Further Suggestionsearly exerciseexercise European Exercise Return if Exercised Aggregate exercise price Automatic exercise Exercise settlement amount |
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