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Adjusted Exercise Price |
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Adjusted exercise price 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. Adjusted Exercise Price 1. The strike price on an option after making allowances for stock splits. For example, suppose the exercise price for an option is $400 and the company doubles the number of shares. The adjusted exercise price would drop to $200. 2. See: Nominal Exercise Price.
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