Equity Notional Amount - Equity Derivatives Provision: Difference between revisions
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{{ | {{eqderivanat|1.24}} | ||
It is different to the {{eqderivprov|Initial Price}} in that {{eqderivprov|Initial Price}} is expressed as a price ''per {{eqderivprov|Share}}'', whereas the {{eqderivprov|Equity Notional Amount}} tends to be {{eqderivprov|Initial Price}} * {{eqderivprov|Number of Shares}}. | It is different to the {{eqderivprov|Initial Price}} in that {{eqderivprov|Initial Price}} is expressed as a price ''per {{eqderivprov|Share}}'', whereas the {{eqderivprov|Equity Notional Amount}} tends to be {{eqderivprov|Initial Price}} * {{eqderivprov|Number of Shares}}. | ||
*{{eqderivprov|5.10}} is the "{{eqderivprov|Equity Notional Reset}}". The {{eqderivprov|Equity Notional Reset}} is a feature for automatically restriking the {{eqderivprov|Equity Notional Amount}} to the prevailing value of the {{eqderivprov|Equity Notional Amount}}. It has the effect of converting posted collateral - which for financial institutions may suffer a punitive capital treatment - into absolutely paid amounts. | *{{eqderivprov|5.10}} is the "{{eqderivprov|Equity Notional Reset}}". The {{eqderivprov|Equity Notional Reset}} is a feature for automatically restriking the {{eqderivprov|Equity Notional Amount}} to the prevailing value of the {{eqderivprov|Equity Notional Amount}}. It has the effect of converting posted collateral - which for financial institutions may suffer a punitive capital treatment - into absolutely paid amounts. | ||
*{{eqderivprov|10.1}} is {{eqderivprov|Re-investment of Dividends}} - wherein declared and paid dividends are not manufactured out but rolled up and added to the {{eqderivprov|Equity Notional Amount}}. | *{{eqderivprov|10.1}} is {{eqderivprov|Re-investment of Dividends}} - wherein declared and paid dividends are not manufactured out but rolled up and added to the {{eqderivprov|Equity Notional Amount}}. | ||
*{{eqderivprov|11}} is {{eqderivprov|Adjustments and Modifications}}. | *{{eqderivprov|11}} is {{eqderivprov|Adjustments and Modifications}}. | ||
{{seealso}} | |||
{{how Equity Notional Reset works}} | {{how Equity Notional Reset works}} | ||
{{eqderivanatomy}} | {{eqderivanatomy}} |