Betekenis van:
default option

default option
Zelfstandig naamwoord
    • an option that is selected automatically unless an alternative is specified

    Synoniemen

    Hyperoniemen


    Voorbeeldzinnen

    1. that contract is settled in cash or may be settled in cash at the option of one or more of the parties, otherwise than by reason of a default or other termination event;
    2. TREATMENT OF THE PROTECTION BUYER For the party who transfers credit risk (the ‘protection buyer’), the positions are determined as the mirror image of the protection seller, with the exception of a credit linked note (which entails no short position in the issuer). If at a given moment there is a call option in combination with a step‐up, such moment is treated as the maturity of the protection. In the case of nth to default credit derivatives, protection buyers are allowed to off‐set specific risk for n-1 of the underlyings (i.e., the n-1 assets with the lowest specific risk charge).