Embedded option

From ACT Wiki
Revision as of 12:34, 22 June 2016 by imported>Doug Williamson (Layout.)
Jump to navigationJump to search

1.

A provision in a debt security which allows the issuer or the holder to exercise an option - this is generally a call option (issuer) or a put option (holder). The option is generally linked to specific dates and may be subject to other conditions.


2.

A provision in a debt security which links payments on the security to pre-specified changes in an underlying security, currency, index or commodity.


See also