Options and Futures

Conversion Factor

In the world of finance, there is a crucial factor that is utilized to determine the price of T-bond and T-note futures contracts. This factor serves to align the value of these contracts with the diverse cash T-bonds and T-notes that are eligible for delivery. It takes into consideration the cash instrument's coupon and the 6 percent deliverable grade required for a futures contract, while also accounting for the maturity or call of the cash instrument. This factor plays a vital role in ensuring the accuracy and efficiency of pricing in the futures market.

Related terms

Cheap

Understand the meaning and definition of Cheap in the context of stock market, trading, and investments.

MORE
Option Premium

Understand the meaning and definition of Option Premium in the context of stock market, trading, and investments.

MORE
Forward (Cash) Contract

Understand the meaning and definition of Forward (Cash) Contract in the context of stock market, trading, and investments.

MORE
Option Seller

Understand the meaning and definition of Option Seller in the context of stock market, trading, and investments.

MORE
Open Free Demat Account!

Join our 3.5 Cr+ happy customers

+91
Explore other categories
Enjoy Zero Brokerage on Equity Delivery
4.4 Cr+DOWNLOADS
Enjoy Zero Brokerage On Stock Investments

Get the link to download the App

Get it on Google PlayDownload on the App Store
Open Free Demat Account!
Join our 3.5 Cr+ happy customers