Template:Nutshell Equity Derivatives 2.3: Difference between revisions

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Latest revision as of 12:18, 10 May 2022

2.3. Option Type.

2.3(a)Call” means an Option Transaction entitling Buyer:
(i) Where “Cash Settlement” applies: To receive from Seller the Option Cash Settlement Amount (where the Settlement Price exceeds the Strike Price); and
(ii) Where “Physical Settlement” applies: To buy Shares (or Baskets) from Seller at the Settlement Price per Share or Basket.
2.3(b)Put” means an Option Transaction entitling Buyer:
(i) Where “Cash Settlement” applies: To receive from Seller the Option Cash Settlement Amount (where the Strike Price exceeds the Settlement Price); and
(ii) Where “Physical Settlement” applies: To sell Shares (or Baskets) to Seller at the Settlement Price per Share or Basket.