Warning: Creating default object from empty value in /hermes/bosnacweb04/bosnacweb04ai/b1550/ipg.lantanasolutionsbh98965/fincyclopedia/wp-content/plugins/independent-core/admin/ReduxCore/inc/class.redux_filesystem.php on line 29 Expiration Pin Risk – Fincyclopedia
[wpdreams_ajaxsearchpro id=44 ]

Derivatives


[addtoany]
Notice: Undefined variable: myString in /hermes/bosnacweb04/bosnacweb04ai/b1550/ipg.lantanasolutionsbh98965/fincyclopedia/wp-content/themes/independent/template-parts/post/content-single.php on line 41

Expiration Pin Risk


The expiration variance which is associated with an options position. In practice, there is a lag between the close of an option exchange and the process of notifying short option holders about whether or not the options were assigned due to exercise. This lag results from time needed for processing, and it would not inflict a great uncertainty on deep out-of-the-money or deep in-the-money options. However, when the option is very close to the money, uncertainty about the final outcome shots up.

The pin prolongs uncertainty and consequently the maturity of the option, but it could lead, sometimes, to a noncompensable contingent liability.


[related_posts_by_tax title="See also" posts_per_page="10" taxonomies="post_tag"]

[pt_view id=78ecc7bubm]
[su_box title="Watch on Youtube" style="soft" box_color="#f5f5f5" title_color="#282828" radius="2" class="" id=""][su_row class=""][su_column size="1/1" center="yes" class=""] [/su_column][/su_row][/su_box]
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    Your email address will not be published.*