Option to redeem


 

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Option to redeem

Some stocks, in particular loan notes, give their holders the right to convert the stock into cash at particular times during the stock's life. In the case of loan notes, the opportunity will often occur at the time the interest payments are made which may be half-yearly or quarterly. Holders of stock who want to redeem will know in advance when the dates are, and invariably have to give formal notice to the company in advance of their wish to redeem. Government bonds (gilts) also carry an option to redeem sometimes.



Similar Matches

Uncovered options

Uncovered options

See: Naked options


Option Pricing Curve

Option Pricing Curve

A graphical representation of the projected price of an option at a fixed point in time. It reflects the amount of time value premium in the option for various stock prices, as well. The curve is generated by using a mathematical model. The delta (or hedge ratio) is the slope of a tangent line to the curve at a fixed stock price. See also Delta and Hedge Ratio


Asian option

Asian option

Option based on the average price of the underlying assets during the life of the option.


Indexed Stock Options

Indexed Stock Options

Options that have an exercise price which may fluctuate above or below market value at performance options in that the exercise price of indexed options typically remains variable until the option is exercised.


Call option

Call option

An option which gives the holder the right but not the obligation to purchase a stated quantity of the underlying instrument (for example shares, indices, commodities etc) at a specified price on or before a given date.


Further Suggestions

plain vanilla option/warrant
Tax deferral option
Binomial option pricing model
Reduction Option Loan (ROL)
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index options
Option series
Non Equity Option
Single option
Covered or hedge option strategies
Call option
Currency put option
Option not to deliver
Listed option
Registered options trader
London International Financial Futures and Options Exchange (LIFFE)
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result of exercising option
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Option spread
Liquid yield option note (LYON)
Option premium
Kuala Lumpur Options and Financial Futures Exchange (KLOFFE)
Lookback option
Doubling option


 
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