Embedded option definition

Embedded option means a characteristic of an investment that gives the issuer or holder the right to alter the level and timing of the cash flows of the investment. Embedded options include call and put provisions and interest rate caps and floors. Since a prepayment option in a mortgage is a type of call provision, a mortgage-backed security composed of mortgages that may be prepaid is an example of an investment with an embedded option.
Sample 1Sample 2Sample 3
Embedded option means a characteristic of an investment that gives the issuer or holder the
Sample 1Sample 2
Embedded option means the automatically exercised option implicitly embedded in the Swap Agreement which could result in the occurrence of a Knock In Event under the Notes.
Sample 1

Examples of Embedded option in a sentence

  • School leaders reward teachers for effective teaching practice through recognition and rewards.

  • If a swap has more than one embedded option or swaption provision, then all such embedded options or swaptions should be real- time reported to the public in the same manner.1. Embedded option on swap.

  • The Commission requests specific comment on the following related to the settlement data elements: (24) Should the Commission include the additional swap data element related to settlement included in the 245 In appendix 1, these data elements are: CDS index attachment point (74); CDS index detachment point (75); Index factor (76); Embedded option type (77); and Unique product identifier (78).

  • Embedded option means a char- acteristic of an investment that gives the issuer or holder the right to alter the level and timing of the cash flows of the investment.

  • Embedded option in LTD product:Call option on right to receive future benefitsEmbedded option in new feature: Put option on policy value.(1c) Determine how a client‟s objectives, needs and constraints affect the selection of an investment strategy or the construction of a portfolio.

  • Embedded option calculations are required for Fair Value reporting, Market Consistent Embedded Value, Asset Liability Management, product development and pricing, Economic Capital calculations and Mergers & Acquisitions.

  • Embedded option value changes exhibit a convexity relationship as can be seen by the asymmetric relationship of the calculated embedded option values after the +/- 100 bps parallel shifts of the yield curve.

  • Therefore, using the Embedded option for the image source is recommended.Fixing Undesirable Page Breaks The reality is that an .rdlc template is basically a text file.

  • Embedded option risk exposures are managed by purchasing options or through a dynamic hedging process.

  • Sources and types of interest rate risks in banking book are:❖ Gap or mismatch risk❖ Basis risk❖ Net Interest position risk❖ Embedded option risk etc.Liquidity riskLiquidity risk occurs when a bank is unable to fulfill its commitments in time when payment falls due.

Related to Embedded option

  • Nonqualified Option means any Option that is not an Incentive Stock Option.

  • Stock Option means a contractual right granted to an Eligible Person under Section 6 hereof to purchase shares of Common Stock at such time and price, and subject to such conditions, as are set forth in the Plan and the applicable Award Agreement.

  • Nonstatutory Stock Option means an Option not intended to qualify as an Incentive Stock Option.

  • Stock Options means the collective reference to "Incentive Stock Options" and "Other Stock Options".

  • Stock Option Agreement means the agreement between the Company and an Optionee that contains the terms, conditions and restrictions pertaining to the Optionee’s Option.

  • NQSO means any Option that is not an ISO.