Sentences with phrase «fluctuating value of the option»
Consider an over-the-counter (OTC) option sold (written) by Bank A to Customer C. Market risk refers to the fluctuating value of the option; if it is daily - mark - to - market, its value will be a function largely of the underlying asset price but also several other risk factors.
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To further this idea, the value of options contracts fluctuates to an equally greater degree than the value of their underlying asset, making options a very lucrative, but equally dangerous, investment medium.
Unlike a purchase of common stock for cash, the purchase of an option involves «leverage,» whereby the value of the option contract generally will fluctuate by a greater percentage than the value of the underlying interest.
By contrast, the cash value in universal life insurance is linked to an interest rate determined by the insurer, and the cash value of variable life and variable universal life is linked the performance of the underlying investment options you choose to invest in and fluctuate with market conditions.
The value of an option will fluctuate with the value of the underlying futures contract, allowing options to be bought and sold on an exchange and traded in the same manner as futures.
Investments in an Investment Option are neither insured nor guaranteed; unit values will fluctuate and there is the risk of investment loss.
Their specific value for the global future power market comes from the ability to provide dispatchable and firm capacity through storage and hybridization options to act as a balancing supply in power systems with increasing shares of fluctuating renewable energies.
A Variable Universal Life cash value account fluctuates in conjunction with the chosen managed investment option, typically made of choices such as small cap, mid cap, large cap, emerging markets, etc..
By contrast, the cash value in universal life insurance is linked to an interest rate determined by the insurer, and the cash value of variable life and variable universal life is linked the performance of the underlying investment options you choose to invest in and fluctuate with market conditions.
It will fluctuate in value based on the performance of the underlying investment options.
Variable annuities will fluctuate in value based on the performance of the underlying investment options you choose