Adjusted Exercise Price -- Applied to ensure fair trading in put and call options on Government National Mortgage Association (Ginnie Mae) contracts. Adjustment is done to the final exercise price of the option to take into consideration coupon rates holding on all GNMA mortgages. If a standard GNMA mortgage has a certain interest payoff, modification is made to the price of GNMA pools with higher interest rates such that the yield to the investor is identical.
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