Buying Options. Allowing MSIM to buy options involves less risk than allowing MSIM to sell options because, if the price of the underlying asset moves against the Investment Adviser, MSIM can simply allow the option to lapse. The maximum loss is limited to the premium, plus any commission or other transaction charges. However, if MSIM buys a call option on a futures contract for the Investment Adviser and later exercises the option, the Investment Adviser will acquire the future. This will expose the Investment Adviser to the risks described under “futures” and “contingent liability transactions”.
Appears in 5 contracts
Samples: Sub Advisory Agreement (Voya INVESTORS TRUST), Sub Advisory Agreement (Voya INVESTORS TRUST), Sub Advisory Agreement (Morgan Stanley Series Funds)
Buying Options. Allowing MSIM to buy options involves less risk than allowing MSIM to sell options because, if the price of the underlying asset moves against the Investment AdviserManager, MSIM can simply allow the option to lapse. The maximum loss is limited to the premium, plus any commission or other transaction charges. However, if MSIM buys a call option on a futures contract for the Investment Adviser Manager and later exercises the option, the Investment Adviser Manager will acquire the future. This will expose the Investment Adviser Manager to the risks described under “"futures” " and “"contingent liability transactions”".
Appears in 3 contracts
Samples: Sub Advisory Agreement (Morgan Stanley Series Funds), Sub Advisory Agreement (Morgan Stanley Series Funds), Sub Advisory Agreement (Morgan Stanley Global Infrastructure Fund)
