Template:Nutshell Equity Derivatives 1.45: Difference between revisions
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{{eqderivprov|1.45}}. '''{{eqderivprov|Knock-out Event}}'''. | |||
:(a) If “'''{{eqderivprov|Knock-out Event}}'''” applies, a party’s right to exercise an {{eqderivprov|Option}} under a {{eqderivprov|Transaction}} will be conditional upon the {{eqderivprov|Knock-out Event}} not having occurred on any {{eqderivprov|Knock-out Determination Day}} as of the time of such exercise, and the parties’ respective rights and obligations will be altered from the occurrence of the {{eqderivprov|Knock-out Event}} as specified in the {{eqderivprov|Confirmation}}. | :(a) If “'''{{eqderivprov|Knock-out Event}}'''” applies, a party’s right to exercise an {{eqderivprov|Option}} under a {{eqderivprov|Transaction}} will be conditional upon the {{eqderivprov|Knock-out Event}} not having occurred on any {{eqderivprov|Knock-out Determination Day}} as of the time of such exercise, and the parties’ respective rights and obligations will be altered from the occurrence of the {{eqderivprov|Knock-out Event}} as specified in the {{eqderivprov|Confirmation}}. | ||
:(b) “'''{{eqderivprov|Knock-out Event}}'''” must be specified in the {{eqderivprov|Confirmation}}. If it is not, but the {{eqderivprov|Confirmation}} specifies a {{eqderivprov|Knock-out Price}} for a {{eqderivprov|Knock-out Reference Security}} that is also the specified {{eqderivprov|Index}}, {{eqderivprov|Share}} or {{eqderivprov|Basket}} for that {{eqderivprov|Transaction}}, the {{eqderivprov|Knock-out Event}} will occur: | :(b) “'''{{eqderivprov|Knock-out Event}}'''” must be specified in the {{eqderivprov|Confirmation}}. If it is not, but the {{eqderivprov|Confirmation}} specifies a {{eqderivprov|Knock-out Price}} for a {{eqderivprov|Knock-out Reference Security}} that is also the specified {{eqderivprov|Index}}, {{eqderivprov|Share}} or {{eqderivprov|Basket}} for that {{eqderivprov|Transaction}}, the {{eqderivprov|Knock-out Event}} will occur: | ||
Latest revision as of 12:11, 13 May 2022
- (a) If “Knock-out Event” applies, a party’s right to exercise an Option under a Transaction will be conditional upon the Knock-out Event not having occurred on any Knock-out 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-out Event as specified in the Confirmation.
- (b) “Knock-out Event” must be specified in the Confirmation. If it is not, but the Confirmation specifies a Knock-out Price for a Knock-out Reference Security that is also the specified Index, Share or Basket for that Transaction, the Knock-out Event will occur:
- (i) If the Knock-out Price on the Trade Date was higher than the initial level set for the Transaction: when the level of the Knock-out Reference Security at the Knock-out Valuation Time on any Knock-out Determination Day is at least equal to the Knock-out Price; and
- (ii) If the Knock-out Price on the Trade Date was lower than the initial level set for the Transaction: when the level of the Knock-out Reference Security at the Knock-out Valuation Time on any Knock-out Determination Day is equal to or lower than the Knock-out Price.
- If the parties cannot agree whether a Knock-out Event has occurred, the Calculation Agent will decide.