Template:Nutshell Equity Derivatives 9.5: Difference between revisions
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:(b) '''{{eqderivprov|Share Forward Transaction}}s where “{{eqderivprov|Variable Obligation}}” does not apply''': 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) '''{{eqderivprov|Share Forward Transaction}}s where “{{eqderivprov|Variable Obligation}}” applies''': <br> | :(c) '''{{eqderivprov|Share Forward Transaction}}s where “{{eqderivprov|Variable Obligation}}” applies''': <br> | ||
::(i) if {{eqderivprov|Settlement Price}} ≤ {{eqderivprov|Forward Floor Price}: ''{{eqderivprov|Number of Shares}}''. <br> | ::(i) if {{eqderivprov|Settlement Price}} ≤ {{eqderivprov|Forward Floor Price}}: ''{{eqderivprov|Number of Shares}}''. <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> | ::(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> | ||
::(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 {{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> | ||
:(d) '''{{eqderivprov|Share Swap Transaction}}s: ''{{eqderivprov|Number of Shares}}''. <br> | :(d) '''{{eqderivprov|Share Swap Transaction}}s''': ''{{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> | :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> | ||
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
- (i) if Settlement Price ≤ Forward Floor Price: 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.