l****q
发帖数: 767 | 1 Dear all,
I have a question from work.
A bank manages our funds for investment. I receive the monthly investment
statement. Last year, the bank bought some reverse convertibles for us, and
we receive option premium each month, also we receive interest payment.
I searched online for "reverse convertible" and "option premium", but I am
still at loss about how this works. I thought the option premium and
interest payment should be the same for each month, but on March's statement
, both option prem | B*********s
发帖数: 306 | 2 There are so many variations that you have to read the terms of the deal
to know exactly what's going on.
The typical reverse convertible is like a bond with an embedded short
put on some equity index.
You remind me of the many recent stories about complex swaps that
European and American muni governments entered into with i-banks that
blew up.
The only reason the bank would sell or trade product like these is they
can get bigger fees. Why don't you just buy a bond and sell put options
yourself
【在 l****q 的大作中提到】
: Dear all,
: I have a question from work.
: A bank manages our funds for investment. I receive the monthly investment
: statement. Last year, the bank bought some reverse convertibles for us, and
: we receive option premium each month, also we receive interest payment.
: I searched online for "reverse convertible" and "option premium", but I am
: still at loss about how this works. I thought the option premium and
: interest payment should be the same for each month, but on March's statement
: , both option prem
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