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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
The strike price of put and call options on Ginnie Mae pass through certificates. Ginnie Mae contracts are made up of mortgages that have interest rates that differ from the rate considered to be benchmark. These contracts must be adjusted in price to achieve that benchmark, and the exercise prices of options on the contracts must also be adjusted. This produces contracts that yield the benchmark interest rate at an exercise price.


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Accordingly, compensation expense is determined as the excess of the market price of the Trust units over the adjusted exercise price of the options at each financial reporting date and is deferred and recognized in income over the vesting period of the options.
35 adjusted exercise price of the Series A Warrants.
In particular, upon closing of the equity investment and assuming the repayment of the $3 million bridge loan, the as adjusted exercise price of the redeemable warrants and Class B redeemable warrants would be approximately $2.
 
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