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 VKAM, 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 VKAM and later exercises the option, VKAM will acquire the future. This will expose VKAM to the risks described under "futures" and "contingent liability transactions".
Appears in 10 contracts
Samples: Sub Advisory Agreement (Van Kampen Retirement Strategy Trust), Investment Sub Advisory Agreement (Van Kampen Retirement Strategy Trust), Investment Sub Advisory Agreement (Van Kampen Bond Fund)
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 VKAMthe Investment Manager, 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 VKAM the Investment Manager and later exercises the option, VKAM the Investment Manager will acquire the future. This will expose VKAM the Investment Manager to the risks described under "“futures" ” and "“contingent liability transactions"”.
Appears in 5 contracts
Samples: Sub Advisory Agreement (Morgan Stanley Utilities Fund), Sub Advisory Agreement (Morgan Stanley Health Sciences Trust), Sub Advisory Agreement (Morgan Stanley Select Dimensions Investment Series)
