Template:Nutshell Equity Derivatives 9.1: Difference between revisions
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{{eqderivprov|9.1}}. '''{{eqderivprov|Physical Settlement of Option Transactions}}'''. For each {{eqderivprov|Exercise Date}} under a {{eqderivprov|Physically-settled}} {{eqderivprov|Option Transaction}}, on the {{eqderivprov|Settlement Date}}: <br> | {{eqderivprov|9.1}}. '''{{eqderivprov|Physical Settlement of Option Transactions}}'''. For each {{eqderivprov|Exercise Date}} under a {{eqderivprov|Physically-settled}} {{eqderivprov|Option Transaction}}, on the {{eqderivprov|Settlement Date}}: <br> | ||
:(a) '''{{eqderivprov|Call}}s''': {{eqderivprov|Buyer}} will pay {{eqderivprov|Seller}} ''{{eqderivprov|Settlement Price}} x {{eqderivprov|Number of Shares to be Delivered}}'' or ''{{eqderivprov|Settlement Price}} x {{eqderivprov|Number of Baskets to be Delivered}}'' (without regard to rounding) and {{eqderivprov|Seller}} will deliver the {{eqderivprov|Number of Shares to be Delivered}} or {{eqderivprov|Number of Baskets to be Delivered}} and will pay any {{eqderivprov|Fractional Share Amount}} to {{eqderivprov|Buyer}}; <br> | :(a) '''{{eqderivprov|Call}}s''': | ||
:(b) '''{{eqderivprov|Put}}s''': {{eqderivprov|Buyer}} will deliver the {{eqderivprov|Number of Shares to be Delivered}} or the {{eqderivprov|Number of Baskets to be Delivered}}, and pay any {{eqderivprov|Fractional Share Amount}} to {{eqderivprov|Seller}} and {{eqderivprov|Seller}} will pay to {{eqderivprov|Buyer}} ''{{eqderivprov|Settlement Price}} x {{eqderivprov|Number of Shares to be Delivered}}'' or ''{{eqderivprov|Settlement Price}} x {{eqderivprov|Number of Baskets to be Delivered}}'' (without regard to rounding); and <br> | ::{{eqderivprov|Buyer}} will pay {{eqderivprov|Seller}} ''{{eqderivprov|Settlement Price}} x {{eqderivprov|Number of Shares to be Delivered}}'' or ''{{eqderivprov|Settlement Price}} x {{eqderivprov|Number of Baskets to be Delivered}}'' (without regard to rounding) and | ||
:(c)such payments and deliveries will be made on the {{eqderivprov|Settlement Date}} through the {{eqderivprov|Clearance System}} to the accounts specified in the {{eqderivprov|Confirmation}}. <br> | ::{{eqderivprov|Seller}} will deliver the {{eqderivprov|Number of Shares to be Delivered}} or {{eqderivprov|Number of Baskets to be Delivered}} and will pay any {{eqderivprov|Fractional Share Amount}} to {{eqderivprov|Buyer}}; <br> | ||
:(b) '''{{eqderivprov|Put}}s''': | |||
::{{eqderivprov|Buyer}} will deliver the {{eqderivprov|Number of Shares to be Delivered}} or the {{eqderivprov|Number of Baskets to be Delivered}}, and pay any {{eqderivprov|Fractional Share Amount}} to {{eqderivprov|Seller}} and | |||
::{{eqderivprov|Seller}} will pay to {{eqderivprov|Buyer}} ''{{eqderivprov|Settlement Price}} x {{eqderivprov|Number of Shares to be Delivered}}'' or ''{{eqderivprov|Settlement Price}} x {{eqderivprov|Number of Baskets to be Delivered}}'' (without regard to rounding); and <br> | |||
:(c) such payments and deliveries will be made on the {{eqderivprov|Settlement Date}} through the {{eqderivprov|Clearance System}} to the accounts specified in the {{eqderivprov|Confirmation}}. <br> | |||
Latest revision as of 16:52, 11 May 2022
9.1. Physical Settlement of Option Transactions. For each Exercise Date under a Physically-settled Option Transaction, on the Settlement Date:
- (a) Calls:
- Buyer will pay Seller Settlement Price x Number of Shares to be Delivered or Settlement Price x Number of Baskets to be Delivered (without regard to rounding) and
- Seller will deliver the Number of Shares to be Delivered or Number of Baskets to be Delivered and will pay any Fractional Share Amount to Buyer;
- (b) Puts:
- Buyer will deliver the Number of Shares to be Delivered or the Number of Baskets to be Delivered, and pay any Fractional Share Amount to Seller and
- Seller will pay to Buyer Settlement Price x Number of Shares to be Delivered or Settlement Price x Number of Baskets to be Delivered (without regard to rounding); and
- (c) such payments and deliveries will be made on the Settlement Date through the Clearance System to the accounts specified in the Confirmation.