Sentences with phrase «shares as the underlying asset»

One solution is that you could initiate and pair a «PUT» stock option using the same company shares as its underlying asset.

Let's say for example that the March 2018 $ 185 calls are trading at $ 3.65 / $ 3.75, so you write one contract (that has 100 AAPL shares as the underlying asset) to generate premium income of $ 365 (less commissions).

Not exact matches

Authorized participants may wish to invest in the ETF shares long - term, but usually act as market makers on the open market, using their ability to exchange creation units with their basic securities to provide liquidity of the ETF shares and help ensure that their intraday market price approximates to the net asset value of the underlying assets.

When the stock is trading at $ 65, suppose you decide to purchase the 62 XYZ Company October put option contract (i.e. the underlying asset is XYZ Company stock, the exercise price is $ 62, and the expiration month is October) at $ 3 per contract (this is the option price, also known as the premium) for a total cost of $ 300 ($ 3 per contract multiplied by 100 shares that the option contract controls).

Mutual fund share value, known as net asset value NAV, is calculated and announced once at the end of the trading day based on share prices of a portfolio's underlying securities.

Share prices can deviate from the fund's net asset value of the underlying securities it holds, as market forces of supply and demand can lead to a trading discount or premium.

As with all CEF investments, there is an additional potential for profit besides the increase in value of the underlying assets per share (also called Net Asset Value or NAV), which is the improvement of their market price relative to their NAV.

Think of them as tracking an underlying asset, such as shares of stock, bonds, and even gold bars.

Net Asset Value Or NAV is the value of each share of a fund as determined by the value of its underlying holdings, including any cash in the portfolio.

Furthermore I believe that NAV is understated as it is based on prices of publicly traded shares that I feel do not fully reflect the underlying assets of these companies.

A financial instrument whose value is «derived» from an underlying asset such as a share, commodity or index.

One standard tool for measuring value is the price - to - book (P / B) ratio which represents the difference between the asking price of a share and its underlying value as determined by the assets of the company.

MINIs are a type of warrant listed on an exchange that can be traded over a range of underlying assets such as shares, indices, commodities and exchange traded funds.

Authorized participants may wish to invest in the ETF shares for the long - term, but usually act as market makers on the open market, using their ability to exchange creation units with their underlying securities to provide liquidity of the ETF shares and help ensure that their intraday market price approximates to the net asset value of the underlying assets.

When you buy a CFD over a share, index or commodity (known as «going long»), you hope that the value of that underlying asset will rise, so you can sell the CFD for a profit.

Stable value funds attempt to maintain a stable share price, but the assets underlying the fund vary as interest rates, prepayment behavior and credit spreads change.

Derivatives are securities whose value depends upon an underlying asset such as a share, commodity or index.

To meet this benchmark, an OTC CFD provider should not allow you to open new CFD positions when ordinary trading in the underlying assets, such as shares, has been suspended or halted.

ETFs can take advantage of their two - tier structure (market makers create and redeem shares in exchange for the underlying assets, then sell / buy those shares to / from you) to essentially eliminate «capital gains distributions» (those pesky annual payouts that a fund is required to make when it sells its underlying assets at a profit as part of share redemption or asset rebalancing).

ICOs raise funds from the public using virtual currency (cryptocurrency) in exchange for their holders receiving proprietary coins or tokens related to a specific venture or project underlying the ICO, such as rights to profits, shares of assets, or rights to use certain services provided by the issuer or voting rights.

These are not usually tradable as the guarantees on the policy are often much lower, and the discount between the surrender value and Asset Share (the true underlying value) is narrower.

As some of Grayscale's previous fund can attest, the shares may trade at a substantial premium over the value of of the underlying asset if quoted on any secondary market in the future.

The trust's value to investors has been subject to debate, as its shares have traded at a significant premium over the net asset value (NAV) of the underlying asset.