Sentences with phrase «closing price of the underlying asset»

In this case, the futures contract (purchase or sale) is settled at the closing price of the underlying asset as on the expiry date of the contract.

Not exact matches

The GBTC trades like a closed - end - fund usually at a price that is substantially different than the value of the underlying asset, and does not possess the ability to create or redeem shares in the open market.

Shares are priced once daily — after the close of business — based on the value of the underlying assets.

The shares of the Spain Fund, Inc., a closed - end mutual fund investing in publicly traded Spanish securities, were bid up in price from approximately net asset value (NAV)-- the combined market value of the underlying investments divided by the number of shares outstanding — to more than twice that level.

Since both the ETF and the basket of underlying assets are tradeable throughout the day, traders take advantage of momentary arbitrage opportunities, which keeps the ETF price close to its fair value.

One side effect of a «close - end» structure is that the LIC share price can depart from the value of the underlying assets (usually other equities), so the share price can trade at a premium or discount to its Net Tangible Aassets (usually other equities), so the share price can trade at a premium or discount to its Net Tangible AssetsAssets.

ETF providers use stocks» prices to calculate an ETF's intraday underlying value throughout the trading day, and the closing net asset value (NAV) of an equity ETF is typically very close to the ETF's closing price.

The market price of an ETF unit should be close to the NAV per unit of the underlying assets.

The creation and redemption mechanisms help ETF shares trade at a price close to the market value of their underlying assets.

While closed - end funds often trade at a premium or discount because they have a fixed number of shares outstanding, market makers work with authorized participants (APs) to strive to keep the price of ETF shares close to fair value (i.e., in line with the ETF's underlying net asset value (NAV)-RRB-.

For example, if the underlying asset had a price of S0 at closing the day before the valuation date, then we used options with strike prices in the range of 0.75 S0 and 1.25 S0.