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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 MatchesMONEP (Marche des Options Negociables de Paris)MONEP (Marche des Options Negociables de Paris)A subsidiary of the Paris Bourse that trades stock and index options. Share optionShare optionAn incentive given to company directors and employees to promote loyalty and commitment.The employee is offered an option to buy shares in the company at a fixed price, at or below the then market price. The option specifies the time during which the employee can exercise the right, and often this will be a period of years. If the company's share price rises in that period, the employee can exercise the option, acquire the shares at the option price, and immediately sell them for a capital gain. If the company's shares do not rise, the employee may take the view that the option is not worth exercising. The option mechanism thus gives the employee discretion.Tax liabilities may be reduced on gains where schemes are approved by the Inland Revenue. Currency call optionCurrency call optionContract that gives the holder the right to purchase a specific currency at a specified price (exchange rate) within a specific period of time. Listed optionListed optionAn option that has been accepted for trading on an exchange. Multi option financing facilityMulti option financing facilityA syndicated confirmed credit line with attached options. Further Suggestionslapsed optionOption agreement Currency put option Foreign currency option London International Financial Futures and Options Exchange option writer Switching options Basket options Lease With Option To Purchase call option Options on physicals Option Pricing Curve Irrational call option Put an option Option account Index option plain vanilla option/warrant Exercising the option Non Equity Option Equity options Knock out option Intrinsic value of an option traditional options Compound option Quality option |
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