Correspondent Blog
Tag: Lending Optionality
07/08/24
Here is the Cost and Risk of Lending Optionality
Optionality is defined as a state in which choice or discretion is allowed. In finance, optionality is an asset (has value) for the person who can exercise the option, while the person who gave the option has the liability. Selling options for above their value can be a profitable business for banks and brokers, but…