Transferable put right
Similar financial termsTransferable Option
A contract which permits a position in the option market to be offset by a transaction on the opposite side of the market in the same contract.
Put provision on bonds
A put provision grants the bondholder the right to sell the issue back to the issuer at par value on designated dates. Here the advantage to the investor is that if interest rates rise after the issue date, thereby reducing a bondís price, the investor can force the issuer to redeem the bond at par value.
A short put option position in which the writer does not have a corresponding short stock position or has not deposited, in a cash account, cash or cash equivalents equal to the exercise value of the put. Also called "naked" puts, the writer has pledged to buy the stock at a certain price if the buyer of the options chooses to exercise it. The nature of uncovered options means the writer's risk is unlimited.
An agreement to put a specified amount of product per period through a particular facility. For example, an agreement to ship a specified amount of crude oil per period through a particular pipeline.
Put-call parity relationship
The relationship between the price of a put and the price of a call on the same underlying security with the same expiration date, which prevents arbitrage opportunities. Holding the stock and buying a put will deliver the exact payoff as buying one call and investing the present value (PV) of the exercise price. The call value equals C=S+P-PV(k).
A financial tool in which the buyer has the right, or option, to enter into a swap as a floatingrate payer. The writer of the swaption therefore becomes the floating-rate receiver/fixed-rate payer.
Gives the holder of a floating-rate bond the right to redeem his note at par on the coupon payment date.
The price at which the asset will be sold if a put option is exercised. Also called the strike or exercise price of a put option.
This security gives investors the right to sell (or put) fixed number of shares at a fixed price within a given time frame. An investor, for example, might wish to have the right to sell shares of a stock at a certain price by a certain time in order to protect, or hedge, an existing investment.
A bond that the holder may choose either to exchange for par value at some date or to extend for a given number of years.
Put an option
To exercise a put option.
An option granting the right to sell the underlying futures contract. Opposite of a call.
Protective put buying strategy
A strategy that involves buying a put option on the underlying security that is held in a portfolio.
A covenant allowing the bondholder to demand repayment in the event of a hostile merger.
Computer-Intergrated Manufacturing (CIM)
The intergration of computer control and monitoring into a manufacturing process.
A put option position in which the option writer also is short the corresponding stock or has deposited, in a cash account, cash or cash equivalents equal to the exercise of the option. This limits the option writer's risk because money or stock is already set aside. In the event that the holder of the put option decides to exercise the option, the writer's risk is more limited than it would be on an uncovered or naked put option.
An new share issue to existing shareholders giving them the right to buy new shares at a predetermined price.
Issuance of "rights" to current shareholders allowing them to purchase additional shares,usually at a discount to market price. Shareholders who do not exercise these rights are usually diluted by the offering. Rights are often transferable, allowing the holder to sell them on the open market to others who may wish to exercise them. Rights offerings are particularly common to c ...
Purchase of shares in which the buyer is entitled to the rights to buy shares in the company's rights issue.
The right to vote on matters that are put to a vote of security holders. For example the right to vote for directors.
Special drawing rights (SDR)
A form of international reserve assets, created by the IMF in 1967, whose value is based on a portfolio of widely used currencies.
Shares trading with rights attached to them.
A short-lived (typically less than 90 days) call option for purchasing additional stock in a firm, issued by the firm to all its shareholders on a pro rata basis.
Rights of individuals and companies to own and utilize property as they see fit and to receive the stream of income that their property generates.
Common stockholder's right to anything of value distributed by the company.
Actual forward rate expressed in dollars per currency unit, or vice versa.
The rights of a firm's securityholders in the event the firm liquidates.