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

Reopen an issue

The Treasury, when it wants to sell additional securities, will occasionally sell more of an existing issue (reopen it) rather than offer a new issue.

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