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.
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Embedded option means a characteristic of an investment that gives the issuer or holder the
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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.
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Examples of Embedded option in a sentence

  • 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.

  • 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.

  • 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.

  • Significant inputs for the valuation of the embedded cash conversion option as of October 3, 2010 are as follows: Embedded option (1) Stock price $ 14.06 Exercise price $ 22.53 Interest rate 1.04% Stock volatility 51.50% Maturity date February 18, 2015 (1) The valuation model utilizes these inputs to value the right but not the obligation to purchase one share at $22.53.

  • Bailey, R.G. Brown, JH Brunt, Mrs L.V. Corfield, K.W. Curry, AW Davies, D.E. Davies, Mrs E.R. Davies, L.G. Davies,L.R.E. Davies, Miss MJB Davies, D.O. Evans, GT Evans, W.J. Evans, CG Gwillim, K.A. Harris, Mrs M.R. Harris, SM Hayes, M.D. Hodges, Miss A.

  • 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: Option of pre-payment of loan and fore-closure of deposits before their stated maturities constitutes embedded option risk.

  • Interest expensed and paid was $0.6 million and $0.3 million for the three months ended March 31, 2023 (2022: $0.5 million and $0.3 million).9.2 (iii) MRC – Embedded option within the debenture with warrantsEffective November 22, 2022, the amended debenture with warrants contains an embedded option, where if MRC were to elect, it would result in fewer common shares being issued.

  • 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.

  • Extendable Swaps Embedded option to extend maturity -- analogous to an option on a forward bond.

Related to Embedded option

  • Related Option means an Option with respect to which a Stock Appreciation Right has been granted.

  • Vested Option means any Option, which has already been vested according to the Vesting Dates.

  • 3(i) Option means an Option granted pursuant to Section 3(i) of the Ordinance to any person who is Non- Employee.

  • Unvested Option means an Option in respect of which the relevant Vesting Conditions have not been satisfied and as such, the Option Grantee has not become eligible to exercise the Option.

  • Reload Option means any Option granted under Section 6(a)(iv) of the Plan.

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

  • Vested Options means the Options that have vested in accordance with Section 2.2 of this Agreement.

  • 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.

  • Incentive Share Option means an Option that is intended to meet the requirements of Section 422 of the Code or any successor provision thereto.

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

  • Company Stock Option means any option to purchase one or more shares of the Company’s Common Stock granted under any of the Company Stock Plans.

  • Tandem Appreciation Right means an Appreciation Right granted pursuant to Section 5 of this Plan that is granted in tandem with an Option Right.

  • Director Option means an Option granted pursuant to Section 6.

  • Stock Reload Option means any option granted under Section 6.3, below, as a result of the payment of the exercise price of a Stock Option and/or the withholding tax related thereto in the form of Stock owned by the Holder or the withholding of Stock by the Company.

  • Share Option means a Nonqualified Share Option or an Incentive Share Option.

  • Shoe Option means the Initial Purchasers’ option to purchase up to seventy five million dollars ($75,000,000) aggregate principal amount of additional Notes as provided for in the Purchase Agreement.

  • Promised Options means promised but ungranted Options that are the greater of those (i) promised pursuant to agreements or understandings made prior to the execution of, or in connection with, the term sheet or letter of intent for the Equity Financing or Liquidity Event, as applicable (or the initial closing of the Equity Financing or consummation of the Liquidity Event, if there is no term sheet or letter of intent), (ii) in the case of an Equity Financing, treated as outstanding Options in the calculation of the Standard Preferred Share’s price per share, or (iii) in the case of a Liquidity Event, treated as outstanding Options in the calculation of the distribution of the Proceeds.

  • 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 his or her Option.

  • Non-Tandem Stock Appreciation Right means the right to receive an amount in cash and/or stock equal to the difference between (x) the Fair Market Value of a share of Common Stock on the date such right is exercised, and (y) the aggregate exercise price of such right, otherwise than on surrender of a Stock Option.

  • Company Option means an option to purchase shares of Company Common Stock granted under the Company Incentive Plan.

  • Unissued Option Shares means the number of Shares, at a particular time, which have been reserved for issuance upon the exercise of an Option but which have not been issued, as adjusted from time to time in accordance with the provisions of section 5, such adjustments to be cumulative.

  • Incentive Option means an Option which by its terms is to be treated as an “incentive stock option” within the meaning of Section 422 of the Code.

  • NQSO means any Option that is not an ISO.

  • Parent Stock Option means any option to purchase Parent Common Stock granted under any Parent Stock Plan.

  • Top-Up Option has the meaning set forth in Section 1.04(a).