grantor investment & finance definition
An investor who sells short a call option or a put option. The grantor of a call option agrees to sell stock at a fixed price and the grantor of a put option agrees to buy stock at a fixed price.
Definition
Grantor
The individual who makes a grant of assets to create a trust. Also referred to as; the settler, donor or trustor.
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A fee a Credit grantor charges a borrower for a late payment.
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Grantor
The maker, writer, or issuer of an option contract who, in return for the premium paid for the option, ...
Grantor trust
A special-purpose vehicle set up to issue fixed-rate capital securities and use the proceeds to purchase debt of the parent company.
Grantor
1. A seller of either call or put options who profits from the premium for which the options are sold. Synonymous with option writer.
2. The creator of a trust, meaning the individual whose assets are put into the trust.
Grantor trust
A nontaxable entity often used by corporations to issue asset-backed securities.
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Seller/Grantor
Also known as the option writer.
Serial Expiration
Options on the same underlying futures being contract which expire in more than one month.
Grantor
A person who sells an option and assumes the obligation, but not the right, to sell (in the case of a call) or buy (in the case of a put) the underlying futures contract at the exercise price.
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GRANTOR RETAINED ANNUITY TRUST (GRAT). An irrevocable trust that provides an effective way to reduce gift tax on property while providing an income annuity to the grantor.
GRANTOR TRUST
This type of fund structure distributes dividends directly to shareholders and allows investors to retain their voting rights on the underlying securities within the fund.
Grantor Retained Income Trust (GRIT)
A tax-saving trust in which a grantor transfers property to a beneficiary, but receives income until termination, at which time the beneficiary begins receiving the income.
The grantor of a put option who does not have a short position in the underlying futures contract, that is, the case of a naked sale or short, ...
The grantor cannot mortgage or refinance the house since he or she no longer owns the property — the trust does.
Depositor (Grantor)
The individual who establishes an account. This person is responsible for verifying his or her eligibility to make a contribution.
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Publicly traded grantor trusts, such as Merrill Lynch's HOLDRS securities, are sometimes considered to be ETFs, although they lack many of the characteristics of other ETFs.
It only takes effect after the death of the grantor. testate To have a legally valid will at the time of death. Someone who dies without such a will is intestate. testator Somebody who has a legally valid will.
First, the parent company establishes a wholly-owned special purpose subsidiary (a grantor trust), whose sole purpose is to issue the securities. The holding company then acquires all of the special purpose trust's common stock.
The answer is that options are sold by other market participants known as option writers, or grantors. Their sole reason for writing options is to earn the premium paid by the option buyer.
Charitable remainder trust: A donor (grantor) transfers assets into a trust, designating a specific charity as the beneficiary.
For example, if you felt July Crude prices were going to fall from $22, you could purchase (go long) puts, and pay the premiums to the seller (grantor or writer).
A type of legally binding trust agreement in which the contributed assets are passed down to the grantor's grandchildren, not the grantor's children.
An irrevocable trust that pays income to a designated person or persons until the grantor's death, when the income is passed on to a designated charity.
Trusts are created when the owner of assets (called the grantor) transfers ownership of the assets to a trustee.
Min-max
The use of both put and call options, one as a grantor the other as a buyer, in order to obtain a flexible hedge within an upper and lower price range and at the same time to eliminate or reduce the adverse costs of premiums.
A trust which the grantor cannot terminate.
-J- Joint Account
An account owned by two or more people which enables all of them to use the account.
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The seller of a position. Also known as the grantor of the trade. "Writing an Currency" is to sell it.
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Grantor Trust ETF that at creation follows an index but remains static and does not attempt to track it. HOLDRs are main adherents to this form of ETF.
The buyer pays a premium to the seller/grantor for this contract. A call option is bought with the expectation of a rise in prices.
 See also: Market, Option, Investment, Issue, Income
  
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