Fungibility


Also found in: Dictionary, Thesaurus, Legal, Encyclopedia, Wikipedia.

Fungibility

The substitutability of listed options, which is dependent upon their common expiration dates and strike prices. The congruence of expiration dates and strike prices lets investors close positions by offsetting transactions through the options clearing corporation.

Fungibility

The state of being interchangeable. For example, money has fungibility because there is no difference between one dollar and another dollar. Likewise, stocks of the same type in the same company and commodities of the same quality are generally fungible. On the other hand, assets like land or baseball cards are not fungible because each unit has unique qualities that add or subtract value.
Mentioned in ?
References in periodicals archive ?
Leiderer attempts to fill this gap by assessing whether the risk of fungibility does significantly differ between these different aid modalities and by suggesting ways that donors can deal with this.
transactions: their mobility, their fungibility, and the tax-sensitivity
It seems the word's usage is always somewhat 'indiscriminate,'" writes cultural critic William Pietz, citing another theorist's dismay at the fungibility of the term.
Such a cap would not materially vitiate any of the benefits of the proposal related to fungibility and liquidity.
This solution probably works, however, only if the partnership opted for fungibility when it was formed.
Zampelli (1991) The Fungibility of US Assistance to Developing Countries and the Impact on Recipient Expenditures: A Case Study of Pakistan.
The worldwide fungibility of money is the despair of regulators and the delight of money and capital market participants on both sides of the market.
Citing the fungibility of money concept embodied in the income tax regulations, the Tax Court held that netting of interest was proper; it "avoids unequal treatment of taxpayers with the same amount of actual interest cost, just as the fungibility of interest concept avoids unequal treatment of taxpayers whose indebtedness is structured differently.
Consummation of the Exchange Offer is subject to a number of conditions, including the issuance of the Original Notes, a tax fungibility condition (which means that each series of the New Notes is treated as part of the same issue as the applicable Original Notes for U.
Most disturbing, the EU auditors also pointed out that while Pegase DFS funds go to "eligible beneficiaries," the EU "has not paid sufficient attention to the fungibility of the funding provided.
EIOPA's role in the supervision of cross-border insurance institutions, together with increased recognition of the position of group supervisor, has implications for the regulation of insurance groups operating within the EU and is expected to result in greater fungibility of capital under Solvency II.
In the first, painting balloons bumpily into the sculptural field, like a popcorn kernel pushed outward by a buildup of thermal energy; in the second, painting withdraws, gathers itself to itself, leaves the shadows playing across its surface to whisper about the fungibility of perception.