Template:M summ Equity Derivatives 2.2: Difference between revisions
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Amwelladmin (talk | contribs) Created page with "The {{eqdefs}} contemplate three kinds of options: *'''European Option''': you can only exercise on the {{eqderivprov|Exercise Date}}, usually the {{eqderivprov|Expiry Date}}..." |
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The {{eqdefs}} contemplate three kinds of options: | [[Option Style - Equity Derivatives Provision|The]] {{eqdefs}} contemplate three kinds of options: | ||
*'''European Option''': you can only exercise on the {{eqderivprov|Exercise Date}}, usually the {{eqderivprov|Expiry Date}} of the {{eqderivprov|Transaction}}. | *'''European Option''': you can only exercise on the {{eqderivprov|Exercise Date}}, usually the {{eqderivprov|Expiry Date}} of the {{eqderivprov|Transaction}}. | ||
*'''American Option''': you can exercise on any date during an {{eqderivprov|Exercise Period}} — so you need also to specify a {{eqderivprov|Commencement Date}}. | *'''American Option''': you can exercise on any date during an {{eqderivprov|Exercise Period}} — so you need also to specify a {{eqderivprov|Commencement Date}}. | ||
*'''{{eqderivprov| | *'''{{eqderivprov|Bermuda Option}}''': you can exercise on specified {{eqderivprov|Potential Exercise Date}}s only during an {{eqderivprov|Exercise Period}}, so while it sort of might help to have a {{eqderivprov|Commencement Date}}, you don’t strictly need one. Disappointingly, Bermuda Options don’t disappear without warning | ||
To our way of thinking Americans are best AND YOU DON’T HEAR THE [[JC]] SAY ''THAT'' VERY OFTEN. | To our way of thinking Americans are best AND YOU DON’T HEAR THE [[JC]] SAY ''THAT'' VERY OFTEN. | ||
Actually, when it comes to rock ’n’ roll, you do. | Actually, when it comes to rock ’n’ roll, you do. | ||
Revision as of 09:21, 10 May 2022
The 2002 ISDA Equity Derivatives Definitions contemplate three kinds of options:
- European Option: you can only exercise on the Exercise Date, usually the Expiry Date of the Transaction.
- American Option: you can exercise on any date during an Exercise Period — so you need also to specify a Commencement Date.
- Bermuda Option: you can exercise on specified Potential Exercise Dates only during an Exercise Period, so while it sort of might help to have a Commencement Date, you don’t strictly need one. Disappointingly, Bermuda Options don’t disappear without warning
To our way of thinking Americans are best AND YOU DON’T HEAR THE JC SAY THAT VERY OFTEN.
Actually, when it comes to rock ’n’ roll, you do.