Nominal exercise price

Definition:

The exercise price of a GNMA option contract, which equals the unpaid principal balance multiplied by the adjusted exercise price.

Investing Essentials


Copyright © 2011 Campbell R. Harvey, Professor of Finance, Fuqua School of Business at Duke University

Term of the Day

Lehman Brothers California Municipal Bond Index

A benchmark index that includes investment-grade, tax-exempt, and fixed-rate bonds issued in California. All securities have long-term maturities (greater than two years) and are selected from issues... Read More

Subscribe to the Term of the Day via email Get the Term of the Day in your inbox!


Create your free portfolio