Finance

Nominal Gearing

January 23, 2021
Finance

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January 23, 2021

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The exercise price of an option whose underlying is a Ginnie Mae certificate. This price is equal to the dollar value of the option, i.e., its adjusted exercise price multiplied by the unpaid principal balance on the underlying certificate.

In the context of warrants, it is the price at which a warrant is exercisable, whereas the holder can acquire other securities such as common stock upon the payment of a certain amount.

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