Optimal Contract Minimizing total cost by using a contract to balance agency costs like monitoring, contracting and misbehavior. Random Finance Terms for the Letter O Operating Margin Operating Risk Operationally Efficient Market Opinion of Title Opinion … [Read more...]
Optimal Portfolio
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Optimal Portfolio Portfolio offering best risk/ return balance for an investor. Each investor’s risk appetite and investment goal is different so the optimal portfolio for each is different too. Random Finance Terms for the Letter O Optimal Portfolio Optional Redemption … [Read more...]
Optional Redemption Provision
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Optional Redemption Provision Allowance made in the bond indenture for issuer to be able to call back the bonds before maturity date for redemption in advance of actual due date. Random Finance Terms for the Letter O Optimal Portfolio Optional Redemption … [Read more...]
Optimization Approach to Indexing
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Optimization Approach to Indexing A technique used with indexing to optimize or maximize a specific goal. For example, maximizing yield from a portfolio, maximizing convexity or improving returns to maximum possible levels. Random Finance Terms for the Letter O Optimal … [Read more...]
Optimized Portfolio as Listed Securities
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Optimized Portfolio as Listed Securities Investment portfolio where the securities included match an index but do not comprehensively cover the complete index. The returns of the portfolio are expected to move in line with the index. Random Finance Terms for the Letter … [Read more...]
Option
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Option A contract giving the holder or buyer a right to purchase or sell an asset. The option holder is not obligated to conduct the trade and can choose to let the option lapse. The price at which the transaction can be carried out is mentioned in the options contract as is the … [Read more...]
Option Elasticity
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Option Elasticity When the underlying security’s value changes by 1%, the percentage change witnessed in the value of an option based on this security. Random Finance Terms for the Letter O Optimal Portfolio Optional Redemption Provision Optimization Approach to … [Read more...]
Option Not to Deliver
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Option Not to Deliver Used in mortgage pipelines. A hedge added to an existing substitute sale or forward. Random Finance Terms for the Letter O Optimal Portfolio Optional Redemption Provision Optimization Approach to Indexing Optimized Portfolio as Listed … [Read more...]
Option Premium
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Option Premium Refer: Option price Random Finance Terms for the Letter O Optimal Portfolio Optional Redemption Provision Optimization Approach to Indexing Optimized Portfolio as Listed Securities Option Elasticity Option Not to Deliver Option Premium Option … [Read more...]
Option Price
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Option Price Price paid by buyer of a call or put option to the writer or seller for gaining the right to purchase or sell an underlying asset within a given time frame at a given price. Random Finance Terms for the Letter O Optimal Portfolio Optional Redemption … [Read more...]
Option Pricing Theory
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Option Pricing Theory A model based on a specific theory that helps evaluate the fair value of the option. For example, the Black-Scholes model Random Finance Terms for the Letter O Optimal Portfolio Optional Redemption Provision Optimization Approach to Indexing Optimized … [Read more...]
Option Seller
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Option Seller Refer: Option Writer. Person who sells a call or put option at a given price in an initial transaction. He is obligated to sell or purchase the underlying asset at the price mentioned in the option if it is exercised within the terms outlined. Random Finance … [Read more...]
Option Writer
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Option Writer Refer: Option seller. One who sells call and put options initially. Random Finance Terms for the Letter O Option Writer Option-Adjusted Spread (OAS) Options Contract Options Contract Multiple Options on Futures Options on Physicals Organized … [Read more...]
Option-Adjusted Spread (OAS)
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Option-Adjusted Spread (OAS) Yield spread between two different fixed income securities with embedded options. For calculations the embedded options are not factored in. Used with derivatives such as MBSs. OAS calculation may differ across models. Generally defined as Yield spread … [Read more...]
Options Contract
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Options Contract Formal agreement giving the holder a right to purchase or sell an asset. These agreements can be bought and sold like other securities at a market determined price. The holder can exercise his right to buy or sell the underlying asset at exercise price quoted in the … [Read more...]
Options Contract Multiple
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Options Contract Multiple Tool to determine dollar value when stock index is the basis of an option. It is denoted as a constant ($100). When this constant is multiplied by cash index value, it gives the stock’s dollar value. Random Finance Terms for the Letter O Option … [Read more...]
Options on Futures
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Options on Futures Contract that gives the owner a right to undertake a predetermined futures contract. When exercised, the option enables the original holder to buy the asset at the price quoted in the futures contract. Random Finance Terms for the Letter O Option … [Read more...]
Options on Physicals
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Options on Physicals Fixed income security based interest rate options. Distinct from options written on futures contract based on interest rates. Random Finance Terms for the Letter O Option Writer Option-Adjusted Spread (OAS) Options Contract Options Contract … [Read more...]
Organized Exchange
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Organized Exchange Marketplace where securities are transacted in. Buyers and sellers gather and conduct trades in securities within the guidelines and rules established by the marketplace. Random Finance Terms for the Letter O Option Writer Option-Adjusted Spread … [Read more...]
Original Face Value
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Original Face Value On issue date, the principal amount relevant to a mortgage. Random Finance Terms for the Letter O Option Writer Option-Adjusted Spread (OAS) Options Contract Options Contract Multiple Options on Futures Options on Physicals Organized … [Read more...]
