Double Option Trader - MEGA Apresentação OFICIAL e Treinamento de liderança por Zoom
A doubling option is a provision in a sinking fund that gives a bond issuer the right to redeem twice the amount of debt when repurchasing callable bonds. A doubling option allows the issuer to retire additional bonds at the sinking fund's call price. Key Takeaways A doubling option is a sinking fund provision that gives a bond issuer the right to redeem twice the amount of debt when repurchasing callable bonds.
A doubling option will usually be exercised by the bond issuer as current interest rates move lower than the bond's yield. Understanding Doubling Option A doubling option is a provision included in some bond indentures, or legal agreements. It double option related to the bond indenture's sinking fund provision.
These plays allow for the offense to do several things based on what the defense is doing to attack the triple option. The double options focused on in this article, are those that mimic the base play, the triple option. Load and Toad Anytime the handoff key is blocked, whether it is by an offensive lineman, or a running double option, is called a load block. There are two types of load blocks in the Flexbone offense, the load block by the B back simply referred to as load and the load block by the offensive tackle, which is referred to as toad. When running the load or the toad scheme, the offense will execute the play as though they were running the inside veer play.
A sinking fund provision is a stipulation included in many bond indentures that requires the bond issuer to set aside a certain proportion of money each year into a fund or account in order to repay bondholders at maturity. That's because the bond issuer is less likely to default on the repayment of the remaining principal upon maturity, since the amount of the final repayment will be substantially lower.
Bonds with sinking funds typically provide downside protection as well as a lower risk of default. For this reason, they often offer lower yields than bonds without sinking funds.
A doubling option gives the bond issuer the right to double the sinking fund provision. In other words, the issuer can repurchase as much as two times as many bonds as are specified in the sinking fund provision. The bonds for repurchase are out of 70 make money selected by lottery, and the repurchase will typically happen at the bond's par value.
In this circumstance, the bond issuer may be motivated to repurchase more debt through the sinking fund option and refinance itself at the new, lower rates. For this reason, exercising the doubling option reduces the return that investors double option receive.
Example of a Doubling Option A doubling option works as follows. The sinking fund provision also requires the bond issuer to use those funds to retire a portion of the debt each year by repurchasing bonds on the open market. Compare Accounts.