Template:Nutshell Equity Derivatives 9.5: Difference between revisions

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Section {{eqderivprov|9.5}}. “'''{{eqderivprov|Number of Shares to be Delivered}}'''”. “'''{{eqderivprov|Number of Shares to be Delivered}}'''” means the number of {{eqderivprov|Shares}} calculated as set out below: <br>
{{eqderivprov|9.5}}. “'''{{eqderivprov|Number of Shares to be Delivered}}'''” is calculated as follows: <br>
:(a) in respect of an {{eqderivprov|Exercise Date}} under a {{eqderivprov|Share Option Transaction}}, a number of {{eqderivprov|Shares}} equal to the number of {{eqderivprov|Options}} exercised or deemed exercised on that {{eqderivprov|Exercise Date}} multiplied by the {{eqderivprov|Option Entitlement}}; <br>
:(a) '''{{eqderivprov|Share Option Transaction}}s''': For an {{eqderivprov|Exercise Date}}, ''number of exercised {{eqderivprov|Options}} x {{eqderivprov|Option Entitlement}}''; <br>
:(b) under a {{eqderivprov|Share Forward Transaction}} for which “'''{{eqderivprov|Variable Obligation}}'''” is not applicable, the {{eqderivprov|Number of Shares}}; <br>
:(b) '''{{eqderivprov|Share Forward Transaction}}s where “{{eqderivprov|Variable Obligation}}” does not apply''': the {{eqderivprov|Number of Shares}}; <br>
:(c) under a {{eqderivprov|Share Forward Transaction}} for which “'''{{eqderivprov|Variable Obligation}}'''” is applicable: <br>
:(c) '''{{eqderivprov|Share Forward Transaction}}s where “{{eqderivprov|Variable Obligation}}” applies''': <br>
::(i) if the {{eqderivprov|Settlement Price}} is less than or equal to the {{eqderivprov|Forward Floor Price}}, the {{eqderivprov|Number of Shares}}; <br>
::(i) if {{eqderivprov|Settlement Price}} ≤ {{eqderivprov|Forward Floor Price}}: ''{{eqderivprov|Number of Shares}}''. <br>
::(ii) if the {{eqderivprov|Settlement Price}} is greater than the {{eqderivprov|Forward Floor Price}} but less than or equal to the {{eqderivprov|Forward Cap Price}}, a number of {{eqderivprov|Shares}} equal to: <br>
::(ii) if {{eqderivprov|Forward Floor Price}} < {{eqderivprov|Settlement Price}} ≤  {{eqderivprov|Forward Cap Price}}: ''({{eqderivprov|Foward Floor Price}}/{{eqderiv|Settlement Price}}) x {{eqderivprov|Number of Shares}}''; and<br>
::''({{eqderivprov|Foward Floor Price}}/{{eqderiv|Settlement Price}}) x {{eqderivprov|Number of Shares}}''; and<br>
::(iii) if {{eqderivprov|Settlement Price}} > {{eqderivprov|Forward Cap Price}}: ''(({{eqderivprov|Forward Floor Price}} + {{eqderivprov|Settlement Price}} - {{eqderivprov|Forward Cap Price}})/{{eqderivprov|Settlement Price}}) x {{eqderivprov|Number of Shares}} <br>
::(iii) if the {{eqderivprov|Settlement Price}} is greater than the {{eqderivprov|Forward Cap Price}}, a number of {{eqderivprov|Shares}} equal to: <br>
:(d) '''{{eqderivprov|Share Swap Transaction}}s''': ''{{eqderivprov|Number of Shares}}''. <br>
::''(({{eqderivprov|Forward Floor Price}} + {{eqderivprov|Settlement Price}} - {{eqderivprov|Forward Cap Price}})/{{eqderivprov|Settlement Price}}) x {{eqderivprov|Number of Shares}} <br>
:If the {{eqderivprov|Number of Shares to be Delivered}} comprises any fraction of a {{eqderivprov|Share}}, it will be rounded down to an integral number of {{eqderivprov|Shares}} and a {{eqderivprov|Fractional Share Amount}} will be payable in lieu of the fraction. <br>
:(d) under a {{eqderivprov|Share Swap Transaction}}, the {{eqderivprov|Number of Shares}}. <br>
:[[In the event that]] the number of {{eqderivprov|Shares}} calculated as set out above comprises any fractional {{eqderivprov|Share}}, the {{eqderivprov|Number of Shares}} to be {{eqderivprov|Delivered}} will include only whole {{eqderivprov|Shares}} and a {{eqderivprov|Fractional Share Amount}} will be payable by the relevant party in lieu of such fractional {{eqderivprov|Share}}. <br>

Latest revision as of 07:42, 12 May 2022

9.5. “Number of Shares to be Delivered” is calculated as follows:

(a) Share Option Transactions: For an Exercise Date, number of exercised Options x Option Entitlement;
(b) Share Forward Transactions where “Variable Obligation” does not apply: the Number of Shares;
(c) Share Forward Transactions where “Variable Obligation” applies:
(i) if Settlement Price ≤ Forward Floor Price: Number of Shares.
(ii) if Forward Floor Price < Settlement Price ≤ Forward Cap Price: (Foward Floor Price/Equity Derivatives) x Number of Shares; and
(iii) if Settlement Price > Forward Cap Price: ((Forward Floor Price + Settlement Price - Forward Cap Price)/Settlement Price) x Number of Shares
(d) Share Swap Transactions: Number of Shares.
If the Number of Shares to be Delivered comprises any fraction of a Share, it will be rounded down to an integral number of Shares and a Fractional Share Amount will be payable in lieu of the fraction.
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