Template:Nutshell Equity Derivatives 3.2: Difference between revisions

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Section {{eqderivprov|3.2}}. '''{{eqderivprov|Procedure for Exercise}}'''. Except when {{eqderivprov|Automatic Exercise}} applies, {{eqderivprov|Buyer}} must give irrevocable notice (which will be oral telephonic notice if practicable, and otherwise written notice) during the {{eqderivprov|Exercise Period}} to {{eqderivprov|Seller}}, or, if applicable, {{eqderivprov|Seller’s Agent}}, of its exercise of an {{eqderivprov|Option}}. In the case of an {{eqderivprov|American Option}}, if the notice of exercise is given after the {{eqderivprov|Latest Exercise Time}} on a {{eqderivprov|Scheduled Trading Day}}, then that notice will be deemed given on the next following {{eqderivprov|Scheduled Trading Day}}, if any, in the {{eqderivprov|Exercise Period}}. In the case of an {{eqderivprov|American Option}} or a {{eqderivprov|Bermuda Option to which}} {{eqderivprov|Multiple Exercise}} is applicable, {{eqderivprov|Buyer}} must specify in the notice the number of {{eqderivprov|Options}} being exercised on the relevant {{eqderivprov|Exercise Date}}. {{eqderivprov|Buyer}} will execute and deliver to {{eqderivprov|Seller}}, or, if applicable, {{eqderivprov|Seller’s Agent}}, a written confirmation confirming the substance of any telephonic notice within one {{eqderivprov|Scheduled Trading Day}} of that notice. Without limiting the obligation of {{eqderivprov|Buyer}} to provide such written confirmation, failure by {{eqderivprov|Buyer}} to provide it will not affect the validity of the telephonic notice. <br>
{{eqderivprov|3.2}}. '''{{eqderivprov|Procedure for Exercise}}'''.  
 
:(a) '''Notice''': Unless {{eqderivprov|Automatic Exercise}} applies, {{eqderivprov|Buyer}} must give irrevocable notice during the {{eqderivprov|Exercise Period}} to {{eqderivprov|Seller}} to exercise an {{eqderivprov|Option}}.  
:(b) '''Late notices''': For {{eqderivprov|American Option}}s, a notice given after the {{eqderivprov|Latest Exercise Time}} on a {{eqderivprov|Scheduled Trading Day}} will be effective on the following {{eqderivprov|Scheduled Trading Day}} in the {{eqderivprov|Exercise Period}} (if there is one).  
:(c) '''{{eqderivprov|Multiple Exercise}}''': Where {{eqderivprov|Multiple Exercise}} applies, {{eqderivprov|Buyer}} must specify how many {{eqderivprov|Options}} it is exercising on each {{eqderivprov|Exercise Date}}.  
:(d) '''Written confirmation of oral notices''': {{eqderivprov|Buyer}} will execute and deliver to {{eqderivprov|Seller}} a written confirmation confirming any oral exercise within one {{eqderivprov|Scheduled Trading Day}} however, failure by to provide such confirmation will not affect the validity of an oral notice. <br>

Latest revision as of 07:17, 11 May 2022

3.2. Procedure for Exercise.

(a) Notice: Unless Automatic Exercise applies, Buyer must give irrevocable notice during the Exercise Period to Seller to exercise an Option.
(b) Late notices: For American Options, a notice given after the Latest Exercise Time on a Scheduled Trading Day will be effective on the following Scheduled Trading Day in the Exercise Period (if there is one).
(c) Multiple Exercise: Where Multiple Exercise applies, Buyer must specify how many Options it is exercising on each Exercise Date.
(d) Written confirmation of oral notices: Buyer will execute and deliver to Seller a written confirmation confirming any oral exercise within one Scheduled Trading Day however, failure by to provide such confirmation will not affect the validity of an oral notice.
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