Template:Nutshell Equity Derivatives 1.44: Difference between revisions
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::(i) The {{eqderivprov|Knock-in Price}} is greater than the initial level set for the {{eqderivprov|Transaction}} (however described), when the level of the {{eqderivprov|Knock-in Reference Security}}, as of the {{eqderivprov|Knock-in Valuation Time}} on any {{eqderivprov|Knock-in Determination Day}} is at least equal to the {{eqderivprov|Knock-in Price}}; and | ::(i) The {{eqderivprov|Knock-in Price}} is greater than the initial level set for the {{eqderivprov|Transaction}} (however described), when the level of the {{eqderivprov|Knock-in Reference Security}}, as of the {{eqderivprov|Knock-in Valuation Time}} on any {{eqderivprov|Knock-in Determination Day}} is at least equal to the {{eqderivprov|Knock-in Price}}; and | ||
::(ii) The {{eqderivprov|Knock-in Price}} is less than the initial level set for the {{eqderivprov|Transaction}} (however described), when the level of the {{eqderivprov|Knock-in Reference Security}} as of the {{eqderivprov|Knock-in Valuation Time}} on any {{eqderivprov|Knock-in Determination Day}} is at most equal to the {{eqderivprov|Knock-in Price}}. | ::(ii) The {{eqderivprov|Knock-in Price}} is less than the initial level set for the {{eqderivprov|Transaction}} (however described), when the level of the {{eqderivprov|Knock-in Reference Security}} as of the {{eqderivprov|Knock-in Valuation Time}} on any {{eqderivprov|Knock-in Determination Day}} is at most equal to 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> | ||
Revision as of 17:35, 9 May 2022
- (a) If “Knock-in Event” applies, a party’s right to exercise an Option under an Transaction such Option will be conditional upon the Knock-in Event occurring on any Knock-in Determination Day as of the time of such exercise and the parties’ respective rights and obligations will be altered from the occurrence of the Knock-in Event as specified in the Confirmation.
- (b) “Knock-in Event” must be specified in the Confirmation. If it is not, but the Confirmation specifies a Knock-in Reference Security or a Knock-in Price, the Knock-in Event will occur where the specified Knock-in Reference Security is also the specified Index, Share or Basket where, on the Trade Date:
- (i) The Knock-in Price is greater than the initial level set for the Transaction (however described), when the level of the Knock-in Reference Security, as of the Knock-in Valuation Time on any Knock-in Determination Day is at least equal to the Knock-in Price; and
- (ii) The Knock-in Price is less than the initial level set for the Transaction (however described), when the level of the Knock-in Reference Security as of the Knock-in Valuation Time on any Knock-in Determination Day is at most equal to the Knock-in Price.
- If the parties cannot agree whether a Knock-in Event has occurred, the Calculation Agent will decide.