# Option loan

- Canonical URL: https://www.gerhardmerk.de/option-loan
- Post ID: 590505
- Modified: 2023-07-25T21:12:16+00:00
- Language: en

## Definition

A bond with additional rights. Within a fixed period of time, the holder has the right (the remainder) but not the obligation to subscribe to shares - or, more rarely, to fixed-income securities or precious metals - in a certain proportion to the nominal value of the security, which is fixed before the option loan is issued. This fixed ratio is also known as leverage. Any price gains or losses are in the same ratio as the leverage, i.e. a multiple of the nominal value. - Recently, a large number of warrant bond variants have become marketable. For example, they give their holders the opportunity to subscribe to - fixed-interest bonds of a subsequent bond of the issuer (warrant bonds with interest warrants; bond warrants), - shares and bonds of a subsequent bond of the issuer (warrant bonds with share and bond warrants), - participation certificates of the issuer, - a certain amount of currency units at a certain rate (warrant bonds with currency warrants; currency warrants), - a certain quantity of a precious metal (platinum, gold), or - goods, such as crude oil; in this case, the bond provisions must specify whether these goods are actually to be delivered or whether cash settlement is to take place. - See candy, cum, European Master Agreement, warrants, mandatory convertible bond. Attention: The financial encyclopedia is protected by copyright and may only be used for private purposes without express consent! University Professor Dr. Gerhard Merk, Dipl.rer.pol., Dipl.rer.oec. Professor Dr. Eckehard Krah, Dipl.rer.pol. E-mail address: info@ekrah.com https://de.wikipedia.org/wiki/Gerhard_Ernst_Merk https://www.jung-stilling-gesellschaft.de/merk/ https://www.gerhardmerk.de/

## Machine-readable

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