Advertising

Grantor

• Is the party who initially sells, writes or grants an option.

 
 Embedded terms in definition
 Grants
Option
Writes
 
 Referenced Terms
 Bank guarantee letter: Is a document by which an approved bank certifies that an put option writer or Grantor has sufficient funds at the bank to cover the write. The funds are equal to the exercised value of the put. This value is equal to the strike price multiplied by the number of shares. It effectively reflects an outright purchase of the underlying security at the strike level.

 Sold call: Is a bearish strategy. It requires the Grantor of the option to fulfill the contract by accepting a short position in the underlying instrument upon exercise. The risk is unlimited and the reward is limited to the premium received.

 Sold put: Is a bullish strategy. It requires the Grantor of the option to fulfill the contract by accepting a long position in the underlying instrument upon exercise. The risk is considered unlimited, though bounded by a zero price, and the reward is limited to the premium received.

 
 Related Terms
 Grantor trust

<< Grams Grantor trust >>

Helping Disabled or Elderly Relatives With Money Management, Even From Far Away: Millions of people serve as financial caregivers for ill or elderly spouses, parents, children or other loved ones. They perform services that include paying bills, handling deposits and investments, filing insurance claims and preparing taxes. Because this role can be costly and physically and emotionally exhausting, especially for a caregiver who lives far away or has the usual time-demands, FDIC Consumer News offers some suggestions. More...

The way to develop self-confidence is to do the thing you fear and get a record of successful experiences behind you. Destiny is not a matter of chance, it is a matter of choice; it is not a thing to be waited for, it is a thing to be achieved. William Jennings Bryan

Advertising



Copyright 2009-2018 GVC. All rights reserved.