Template:Nutshell Equity Derivatives 1.44: Difference between revisions
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{{eqderivprov|1.44}}. '''{{eqderivprov|Knock-in Event}}'''. <br> | {{eqderivprov|1.44}}. '''{{eqderivprov|Knock-in Event}}'''. <br> | ||
:(a) If “'''{{eqderivprov|Knock-in Event}}'''” applies, a party’s right to exercise an {{eqderivprov|Option}} under an {{eqderivprov| | :(a) If “'''{{eqderivprov|Knock-in Event}}'''” applies, a party’s right to exercise an {{eqderivprov|Option}} under an {{eqderivprov|Option}} {{eqderivprov|Transaction}} will be conditional upon the {{eqderivprov|Knock-in Event}} existing when it is exercised on any {{eqderivprov|Knock-in Determination Day}}. The parties’ rights and obligations will be altered upon the such exercise as is specified in the {{eqderivprov|Confirmation}}. | ||
:(b) “'''{{eqderivprov|Knock-in Event}}'''” must be specified in the {{eqderivprov|Confirmation}}. If it is not, but the {{eqderivprov|Confirmation}} specifies a {{eqderivprov|Knock-in Price}} for a {{eqderivprov|Knock-in Reference Security}} that is also the specified {{eqderivprov| | :(b) “'''{{eqderivprov|Knock-in Event}}'''” must be specified in the {{eqderivprov|Confirmation}}. If it is not, but the {{eqderivprov|Confirmation}} specifies a {{eqderivprov|Knock-in Price}} for a {{eqderivprov|Knock-in Reference Security}} that is also the specified {{eqderivprov|Underlier}} for that {{eqderivprov|Transaction}}, the {{eqderivprov|Knock-in Event}} will occur: | ||
::(i) If the {{eqderivprov|Knock-in Price}} on the {{eqderivprov|Trade Date}} was ''higher'' than the initial level set for the {{eqderivprov|Transaction}}: when | ::(i) If the {{eqderivprov|Knock-in Price}} on the {{eqderivprov|Trade Date}} was ''higher'' than the initial level set for the {{eqderivprov|Transaction}}: when the {{eqderivprov|Knock-in Reference Security}}’s level at the {{eqderivprov|Knock-in Valuation Time}} on a {{eqderivprov|Knock-in Determination Day}} at least equals the {{eqderivprov|Knock-in Price}}; and | ||
::(ii) If the {{eqderivprov|Knock-in Price}} on the {{eqderivprov|Trade Date}} was ''lower'' than the initial level set for the {{eqderivprov|Transaction}}: when | ::(ii) If the {{eqderivprov|Knock-in Price}} on the {{eqderivprov|Trade Date}} was ''lower'' than the initial level set for the {{eqderivprov|Transaction}}: when the {{eqderivprov|Knock-in Reference Security}}‘s level at the {{eqderivprov|Knock-in Valuation Time}} on a {{eqderivprov|Knock-in Determination Day}} at most equals the {{eqderivprov|Knock-in Price}}. | ||
:If the parties cannot agree whether a {{eqderivprov|Knock-in Event}} has occurred, the {{eqderivprov|Calculation Agent}} will decide. <br> | :If the parties cannot agree whether a {{eqderivprov|Knock-in Event}} has occurred, the {{eqderivprov|Calculation Agent}} will decide. <br> |