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Option to redeem |
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Option to redeemSome 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 MatchesUncovered optionsUncovered optionsSee: Naked options Option Pricing CurveOption Pricing CurveA 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 optionAsian optionOption based on the average price of the underlying assets during the life of the option. Indexed Stock OptionsIndexed Stock OptionsOptions 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 optionCall optionAn 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 Suggestionsplain vanilla option/warrantTax deferral option Binomial option pricing model Reduction Option Loan (ROL) Settlement options 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) Physical option result of exercising option Foreign currency option 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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