Implied Volatility

An estimate for future expected Volatility. This is one of the assumptions made by the seller of an Option when calculating the price of that Option.

In-the-Money

In the case of a Call, the Spot Price of the Underlying is higher than the Strike Price. In the case of a Put, the Spot Price is lower than the Strike Price.

Initial Level

The performance of an Option is linked to the movement in an Underlying asset. In order to measure this performance, the initial level of that Underlying is recorded at a pre-agreed date at the start of the investment Term.

Instalments

For a portion of the share price, Instalments offer investors the potential for dividends, franking credits and capital appreciation as if they owned the shares.

Instalment MINIs

For a portion of the share price, Instalment MINIs offer investors the potential for dividends, franking credits and capital appreciation as if they owned the shares.

Intrinsic Value

As at a particular date, the “basic” value of an Option or a Warrant, based on the difference between its Strike Price and the Spot Price of the Underlying on that date. The Intrinsic Value of a Call is the amount (if any) by which the Spot Price of the Underlying exceeds the Exercise Price, and the Intrinsic Value of a Put is the amount (if any) by which the Spot Price of the Underlying is less than the Exercise Price. Intrinsic Value does not reflect Time Value.

Issuer

The entity which issues a Structured Investment or Warrant and which must fulfil the obligations set out in the Structured Investment or Warrant instrument.

 

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