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notional amount


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1 عمومی:: مقدار مفهومی

Corporate bonds are standardized credit contracts that usually promise to repay their notional amount at maturity and regular interest payments in between. Addressing Information Asymmetries and Conflicts of Interest How can lenders be confident that the borrowers they lent money to actually pay interest and return the full notional amount at maturity? Pooling is done by granting loans with large notional amounts and by issuing deposits with smaller notional amounts. A plain loan contract with fixed interest and fixed notional amount is such a contract. the notional amount insured Long a call option on one equity share The share price ends below the strike price of the call option, or the counterparty defaults.

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