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Embedded Option
(redirected from Embedded Options)

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Embedded option
An option that is part of the structure of a bond that gives either the bondholder or the issuer the right to take some action against the other party, as opposed to a bare option, which trades separately from any underlying security.
Embedded Option
An option or other special provision attached to a bond. For example, an embedded option in a convertible bond is the ability of the bondholder to exchange the bond for shares in the underlying common stock. Likewise, an embedded option may enable the issuer to call a callable bond before maturity. It differs from a bare option, which is the trading of a standalone security separately from any bond.
embedded option
A provision within a security giving either the issuer or the security holder the right to take a specified action against the other. For example, a call provision is an embedded option in a bond that gives the issuer the right to redeem the bond prior to the scheduled maturity.
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ABSTRACT New international accounting standards require insurers to reflect the value of embedded options and guarantees in their products.
Pricing the option to surrender in incomplete markets by Consiglio, Andrea; De Giovanni, Domenico / Journal of Risk and Insurance
Smaller credit unions new to complex structured investments with embedded options require high-touch service, he said, which includes product education and managing expectations in today's market.
SE Corp investment CUSO nearing $1B under management by Credit Union Times
He told FM that one of the main challenges facing gas suppliers was how to value embedded options in wholesale gas purchase contracts.
Energy suppliers toil hard to drill own through embedded options by Financial Management (UK)
 
 
 
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