Template:Nutshell Equity Derivatives 6.7(d): Difference between revisions

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:{{eqderivprov|6.7(d)}} '''{{p|eq|Adjustments of the Exchange-traded Contract (Averaging)|Adjustments of the Exchange-traded Contract}}'''. If any {{eqderivprov|Exchange-traded Contract}} terms are changed by the {{eqderivprov|Exchange}}, the {{eqderivprov|Calculation Agent}} must adjust any variable relevant to {{eqderivprov|Transaction}} settlement as necessary to preserve the economic equivalent of all payments by the parties under the {{eqderivprov|Transaction}} that would have been required following that change. <br>
:{{eqderivprov|6.7(d)}} '''{{p|eq|Adjustments of the Exchange-traded Contract (Averaging)|Adjustments of the Exchange-traded Contract}}'''. Without duplication of Section {{eqderivprov|11.1}} (which [[shall]] govern [[in the event of]] any conflict), [[in the event that]] the terms of the {{eqderivprov|Exchange-traded Contract}} are changed or modified by the {{eqderivprov|Exchange}}, the {{eqderivprov|Calculation Agent}} [[shall]], if necessary, adjust [[one or more]] of the {{eqderivprov|Strike Price}}, the {{eqderivprov|Number of Options}}, the {{eqderivprov|Initial Price}}, the {{eqderivprov|Forward Price}}, the {{eqderivprov|Forward Floor Price}}, the {{eqderivprov|Forward Cap Price}}, the {{eqderivprov|Knock-in Price}}, the {{eqderivprov|Knock-out Price}} [[and/or]] any other variable [[relevant]] to the settlement terms of the {{eqderivprov|Transaction}} to preserve for each party the economic equivalent of any payment or payments (assuming satisfaction of each applicable condition precedent) by the parties in respect of the {{eqderivprov|Transaction}} that would have been required after the date of such change. <br>

Latest revision as of 15:36, 11 May 2022

6.7(d) Adjustments of the Exchange-traded Contract. If any Exchange-traded Contract terms are changed by the Exchange, the Calculation Agent must adjust any variable relevant to Transaction settlement as necessary to preserve the economic equivalent of all payments by the parties under the Transaction that would have been required following that change.
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