ADJUSTED EXERCISE PRICE


Meaning of ADJUSTED EXERCISE PRICE in English

Term used in options on Ginnie Mae (Government National Mortgage Association) contracts . The final exercise price of the option accounts for the coupon rates carried on Ginnie Mae mortgages . For example, if the standard GNMA mortgage has an 9% yield , the price of GNMA pools with 13% mortgages in them is altered so that the investor receives the same yield .

Campbell R. Harvey. Hypertextual finance English glossary.      Английский словарь гипертекстовых финансов.