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TeachMeFinance.com 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. About the author Mark McCracken Author: Mark McCracken is a corporate trainer and author living in Higashi Osaka, Japan. He is the author of thousands of online articles as well as the Business English textbook, "25 Business Skills in English". Copyright © 2007 by Mark McCracken, All Rights Reserved. TeachMeFinance.com is an informational website, and should not be used as a substitute for professional financial or legal advice. TeachMeFinance.com and its owner recommend consultation with a professional financial advisor prior to any investment or financial decision. Please read our disclaimer.