The implied call allows a borrower to refinance a mortgage when interest rates drop. In this case, the borrower will take out a new mortgage at the lower rate, using its proceeds to call the original debt.
Investment dictionary. Academic. 2012.
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Implied call — The right of the homeowner to prepay, or call, the mortgage at any time. The New York Times Financial Glossary … Financial and business terms
implied call — The right of the homeowner to prepay, or call, a mortgage at any time. Bloomberg Financial Dictionary … Financial and business terms
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implied odds — noun The odds offered by the amount one must call against the amount currently in the pot plus the amount one stands to gain from future betting. (In contrast to pot odds) … Wiktionary
Irrational call option — The implied call imbedded in the MBS. Identified as irrational because the call is sometimes not exercised when it is in the money (interest rates are below the threshold to refinance). Sometimes exercised when not in the money (home sold without … Financial and business terms
irrational call option — The implied call imbedded in a MBS. Irrational because the call is sometimes not exercised when it is in the money (interest rates are below the threshold to refinance), and sometimes exercised when it is not in the money. Option exercise like… … Financial and business terms
Put–call parity — In financial mathematics, put call parity defines a relationship between the price of a call option and a put option both with the identical strike price and expiry. To derive the put call parity relationship, the assumption is that the options… … Wikipedia
Timer Call — The vanilla call (or put) is the root of all optional products, from warrants to very complex structured products. The principle hasn’t changed since its invention more than 3 decades ago. In 2007, a famous french bank reinvented this fundamental … Wikipedia