|
|
Ratio writer |
|
|
|
 Home Site Map Add Term Search About Us Contributors |
Ratio writerAn option writer who does not own the number of shares required to cover the call options he or she writes.Ratio writer Similar MatchesLead underwriterLead underwriterThe head of a syndicate of financial firms that are sponsoring an initial public offering of securities or a secondary offering of securities. Could also apply to bond issues. Underwriters discountUnderwriters discountSee: Gross spread UnderwriterUnderwriterA firm, usually an investment bank, that buys an issue of securities from a company and resells it to investors. In general, A party that guarantees the proceeds to the firm from a security sale, thereby in effect taking ownership of the securities. Option writerOption writerThe initial 'seller' of an option. He has to fulfil the terms of the option contract if the holder choose to exercise it. So if the holder exercises a call option to buy some shares, the option writer has to deliver the shares. Note that the option writer has an obligation, but no rights. It is not up to him whether the option is exercised. WriterWriterA person who makes an opening sale of an option contract. Upon notification of exercise by the option holder (the buyer), the writer is obliged to deliver or take delivery of the underlying instrument (for example, shares, commodities etc). Further SuggestionsunderwriterManaging underwriter Option writer Naked writer Covered writer |
|
|
|