adjusted exercise price

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.

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.
References in periodicals archive ?
The firm said that it will announce the adjusted exercise price of the warrants on July 1, 2014.
The Firm will announce the adjusted Exercise Price of the warrants on July 1, 2014.
Post-closing, warrants to purchase approximately 13,500,000 shares of common stock will have an adjusted exercise price of $0.
If any person or group becomes an owner of 15 percent or more of the company's common stock, each right will entitle its holder (other than the 15-percent shareholder or group and related persons) to purchase, at an adjusted exercise price equal to ten times the previous purchase price, shares of the company's common stock having a value of twice the right's adjusted exercise price.
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.
CEDAR RAPIDS, Iowa, March 31 /PRNewswire/ -- Murdock Communications Corporation (OTC Bulletin Board: MURC and MURCW) today announced that the adjusted exercise price of its outstanding Common Stock Purchase Warrants is $3.
0908 shares of Common Stock at an adjusted exercise price of $8.
The number of shares that will actually be issued due to exercise of these options will be computed according to the difference between the price of the shares on the exercise date and the adjusted exercise price on the exercise date.
In connection with the reverse split, the Company's 1,835,727 outstanding warrants were also proportionally adjusted to 183,579 warrants, with an adjusted exercise price of $5.
If a person or group acquires beneficial ownership of 15% or more of the outstanding common stock of the Company, each Right will entitle its holder to purchase at an adjusted exercise price, a number of shares of common stock of the Company having a market value at that time of twice the adjusted exercise price, or, if the number of shares of common stock then available for purchase from the Company is not sufficient to permit such exercise in full by the holders of all exercisable Rights, each Right will entitle its holder to purchase, at par value (presently $.
There are currently 621,142 Class A Warrants outstanding, each of which entitles the holder to acquire, at an adjusted exercise price of $9.
At the same time, the board approved the identical extension of the exercise period of 12,500 common stock purchase warrants, adjusted for the reverse split, issued to the underwriter of the company's initial public offering in November 1986, at their adjusted exercise price of $7.

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