Template:Nutshell Equity Derivatives 8.3: Difference between revisions

Latest revision as of 16:40, 11 May 2022

8.3. “Strike Price Differential” means, for each Valuation Date, the greater of zero and

(a) for a Call, Settlement Price - Strike Price; or

(b) for a Put, Strike Price - Settlement Price.

@@ Line 1: / Line 1: @@
-{{eqderivprov|8.3}}. “'''{{eqderivprov|Strike Price Differential}}'''” means, for each {{eqderivprov|Valuation Date}}, the greater of
+{{eqderivprov|8.3}}. “'''{{eqderivprov|Strike Price Differential}}'''” means, for each {{eqderivprov|Valuation Date}}, the greater of zero and
-:(a)
+:(a) for a {{eqderivprov|Call}}, ''{{eqderivprov|Settlement Price}} - {{eqderivprov|Strike Price}}''; or
-::(i) for a {{eqderivprov|Call}}, the {{eqderivprov|Settlement Price}} minus {{eqderivprov|Strike Price}} or
+:(b) for a {{eqderivprov|Put}}, ''{{eqderivprov|Strike Price}} - {{eqderivprov|Settlement Price}}''. <br>
-::(ii) for a {{eqderivprov|Put}}, the {{eqderivprov|Strike Price}} minus {{eqderivprov|Settlement Price}}, and
-:(b) zero. <br>