Option Risk Sample Clauses

Option Risk. When an asset contains an option component, its value can be affected by changes in specific factors, including: - Volatility: A measure of the variability of the price of the underlying asset of the option. - Time Value: The value of the option, excluding its intrinsic value, which incorporates the cost of carry and the probability of exercise. - Intrinsic Value: The amount by which an option is in the money, relative to the forward price inferred by the market at the revaluation time. - Risk-Free Interest Rate: The interest rate of a risk-free investment. For exotic options, the risk can arise from the characteristics of the underlying asset as well as conditions related to its evolution, such as corridors, average options, barrier options, and others.
Sample 1
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Option Risk 
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Related to Option Risk

  • Option The Receiver hereby grants to the Assuming Institution an exclusive option for the period of ninety (90) days commencing the day after Bank Closing to accept an assignment from the Receiver of all Leased Data Management Equipment.

  • Option Award The Company hereby awards Grantee an Option to purchase shares of Company common stock, par value $.01 per share (“Shares”), pursuant to this Agreement at an exercise price per Share of $XX.XX, subject to the terms and conditions set forth herein and in the Plan. The Option may not be exercised in whole or in part as of the Grant Date, and becomes exercisable only if and to the extent provided in the following paragraphs and otherwise subject to and in accordance with the Plan.

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