Ratio writer


 

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Ratio writer

An option writer who does not own the number of shares required to cover the call options he or she writes.



Ratio writer

Similar Matches

Option writer

Option writer

See: Option seller


Underwriter

Underwriter

A 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.


Managing underwriter

Managing underwriter

The leading firm in an underwriting group, which originates the deal and acts as an agent for the group.


Option writer

Option writer

The 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.


Writer

Writer

A 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 Suggestions

Covered writer
underwriter
Underwriters discount
Naked writer
Lead underwriter


 
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