Template:Nutshell Equity Derivatives 2.3(a): Difference between revisions
Jump to navigation
Jump to search
Amwelladmin (talk | contribs) Created page with ":{{eqderivprov|2.3(a)}} '''{{eqderivprov|Call}}'''. “'''{{eqderivprov|Call}}'''” is an {{eqderivprov|Option Transaction}} where the {{eqderivprov|Buyer}}: <br> ::(i) '''{{..." |
Amwelladmin (talk | contribs) No edit summary |
||
| Line 1: | Line 1: | ||
:{{eqderivprov|2.3(a)}} '''{{eqderivprov|Call}}'''. “'''{{eqderivprov|Call}}'''” is an {{eqderivprov|Option Transaction}} where the {{eqderivprov|Buyer}}: <br> | :{{eqderivprov|2.3(a)}} '''{{eqderivprov|Call}}'''. A “'''{{eqderivprov|Call}}'''” is an {{eqderivprov|Option Transaction}} where the {{eqderivprov|Buyer}}: <br> | ||
::(i) '''{{eqderivprov|Cash Settlement}}''': | ::(i) '''{{eqderivprov|Cash Settlement}}''': may exercise a {{eqderivprov|cash-settled}} {{eqderivprov|Call}} if the {{eqderivprov|Settlement Price}} exceeds the {{eqderivprov|Strike Price}}, to receive an {{eqderivprov|Option Cash Settlement Amount}} from {{eqderivprov|Seller}}; and <br> | ||
::(ii) '''{{eqderivprov|Physical Settlement}}''': where the {{eqderivprov|Call}} is {{eqderivprov|physically-settled}}, | ::(ii) '''{{eqderivprov|Physical Settlement}}''': where the {{eqderivprov|Call}} is {{eqderivprov|physically-settled}}, buy {{eqderivprov|Shares}} (or {{eqderivprov|Basket}}s) from {{eqderivprov|Seller}} at the {{eqderivprov|Settlement Price}}, <br> | ||
Revision as of 14:48, 9 November 2018
- 2.3(a) Call. A “Call” is an Option Transaction where the Buyer:
- (i) Cash Settlement: may exercise a cash-settled Call if the Settlement Price exceeds the Strike Price, to receive an Option Cash Settlement Amount from Seller; and
- (ii) Physical Settlement: where the Call is physically-settled, buy Shares (or Baskets) from Seller at the Settlement Price,
- (i) Cash Settlement: may exercise a cash-settled Call if the Settlement Price exceeds the Strike Price, to receive an Option Cash Settlement Amount from Seller; and