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Finance Dictionary and Glossary of Investment Terms
Adjusted exercise price
Term used in options on Ginnie Mae (Government National Mortgage Association) contracts. The final exercise price of the option accounts for the coupon rates carried on Ginnie Mae mortgages. For example, if the standard GNMA mortgage has an 9% yield, the price of GNMA pools with 13% mortgages in them is altered so that the investor receives the same yield.
1. An option's strike price after adjustments have been made for stock splits to its underlying security.2. A term used to describe the strike prices for options written on Ginnie Mae pass through certificates.