- Industry: Financial services
- Number of terms: 73910
- Number of blossaries: 1
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A written option is considered to be covered if the writer also has an opposing market position on a share-for-share basis in the underlying security. That is, a short call is covered if the underlying stock is owned, and a short put is covered (for margin purposes) if the underlying stock is also short in the account. In addition, a short call is covered if the account is also long another call on the same security, with a striking price equal to or less than the striking price of the short call. A short put is covered if there is also a long put in the account with a striking price equal to or greater than the striking price of the short put.
Industry:Financial services
A bond backed by the government unit issuing it as well as by revenue from the project that is to be financed by the bond.
Industry:Financial services
Usually refers to the fact that analysts begin following a particular security. This usually happens when there is enough trading in it to warrant attention by the investment community.
Industry:Financial services
Ratios used to test the adequacy of cash flows generated through earnings for purposes of meeting debt and lease obligations, including the interest coverage ratio and the fixed-charge coverage ratio.
Industry:Financial services
Also called horizon-matching, a variation of multiperiod immunisation and cash flow-matching in which a portfolio is created that is always duration-matched and also cash-matched in the first few years.
Industry:Financial services
A short call option position in which the writer owns the number of shares of the underlying stock represented by the option contracts. Covered calls generally limit the risk the writer takes because the stock does not have to be bought at the market price, if the holder of that option decides to exercise it.
Industry:Financial services
A strategy in which a put and call with the same strike price and expiration are either both bought or both sold. Related: Straddle
Industry:Financial services
A strategy that involves writing a call option on securities that the investor owns. See: Covered or hedge option strategies.
Industry:Financial services
A financial statement that merges the assets, liabilities, net worth, and operating figures of two or more affiliated companies. A combined statement is distinguished from a consolidated financial statement of a company and subsidiaries, which must reconcile investment and capital accounts.
Industry:Financial services
