Filter by Categories
Accounting
Banking

Derivatives




Monetizing an Option


An embedded option that is sold by a firm to derivatives dealers in order to realize cash out of it instead of letting its contract expire worthless. This option is often an implicit component or feature of financial contracts or agreements, which has value, per se, though it cannot be realized without the option being monetized, i.e., converted into cash by selling it into dealers seeking mirror or offsetting transactions.



ABC
Derivatives have increasingly become very important tools in finance over the last three decades. Many different types of derivatives are now traded actively on ...
Watch on Youtube
Remember to read our privacy policy before submission of your comments or any suggestions. Please keep comments relevant, respectful, and as much concise as possible. By commenting you are required to follow our community guidelines.

Comments


    Leave Your Comment

    Your email address will not be published.*