Position Bond

Position Bond

A fidelity bond covering the jobs named on the bond. A fidelity bond compensates a company in the event it loses money as the result of employee theft or fraud. A position bond limits this coverage to the positions named in it. For example, a position bond may cover theft by the vice president of marketing, regardless of who fills that position at a given time. See also: Name schedule bond.
References in periodicals archive ?
Reasonable Hedge Performance Performance Risk Offset Position Bond without Bond with Savings Portfolio Portfolio Margining Margining Long 40 CME ED futures $26,000 $6,500 $19,500 Short 15 CBOT 10 Year Note futures $19,500 $4,875 $14,625 Total Performance Bond $45,500 $11,375 $34,125 Total Guarantee Fund Obligation (at 5% of Performance Bond) $2,275 $569 $1,706
Reasonable Hedge Performance Performance Risk Offset Position Bond without Bond with Savings Portfolio Portfolio Margining Margining Long 2 CME S&P 500 futures $28,500 $5,700 $22,800 Short 5 CBOT Dow(SM) futures $20,000 $4,000 $16,000 Total Performance Bond $48,500 $9,700 $38,800 Total Guarantee Fund Obligation (at 5% of Performance Bond) $2,425 $485 $1,940

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