Template:Nutshell Equity Derivatives 3.2: Difference between revisions

From The Jolly Contrarian
Jump to navigation Jump to search
← Older edit
VisualWikitext
No edit summary
No edit summary
 
Line 1: Line 1:
{{eqderivprov|3.2}}. '''{{eqderivprov|Procedure for Exercise}}'''. Unless {{eqderivprov|Automatic Exercise}} applies, {{eqderivprov|Buyer}} must give irrevocable notice during the {{eqderivprov|Exercise Period}} to {{eqderivprov|Seller}} to exercise an {{eqderivprov|Option}}. For {{eqderivprov|American Option}}s, a notice given after the {{eqderivprov|Latest Exercise Time}} on a {{eqderivprov|Scheduled Trading Day}} will be effective on the following {{eqderivprov|Scheduled Trading Day}} in the {{eqderivprov|Exercise Period}} (if there is one). Where {{eqderivprov|Multiple Exercise}} applies, {{eqderivprov|Buyer}} must specify how many {{eqderivprov|Options}} it is exercising on each {{eqderivprov|Exercise Date}}. {{eqderivprov|Buyer}} will execute and deliver to {{eqderivprov|Seller}} a written confirmation confirming any oral exercise within one {{eqderivprov|Scheduled Trading Day}} however, failure by to provide such confirmation will not affect the validity of an oral notice. <br>
{{eqderivprov|3.2}}. '''{{eqderivprov|Procedure for Exercise}}'''.  
 
:(a) '''Notice''': Unless {{eqderivprov|Automatic Exercise}} applies, {{eqderivprov|Buyer}} must give irrevocable notice during the {{eqderivprov|Exercise Period}} to {{eqderivprov|Seller}} to exercise an {{eqderivprov|Option}}.  
:(b) '''Late notices''': For {{eqderivprov|American Option}}s, a notice given after the {{eqderivprov|Latest Exercise Time}} on a {{eqderivprov|Scheduled Trading Day}} will be effective on the following {{eqderivprov|Scheduled Trading Day}} in the {{eqderivprov|Exercise Period}} (if there is one).  
:(c) '''{{eqderivprov|Multiple Exercise}}''': Where {{eqderivprov|Multiple Exercise}} applies, {{eqderivprov|Buyer}} must specify how many {{eqderivprov|Options}} it is exercising on each {{eqderivprov|Exercise Date}}.  
:(d) '''Written confirmation of oral notices''': {{eqderivprov|Buyer}} will execute and deliver to {{eqderivprov|Seller}} a written confirmation confirming any oral exercise within one {{eqderivprov|Scheduled Trading Day}} however, failure by to provide such confirmation will not affect the validity of an oral notice. <br>

Latest revision as of 07:17, 11 May 2022

3.2. Procedure for Exercise.

(a) Notice: Unless Automatic Exercise applies, Buyer must give irrevocable notice during the Exercise Period to Seller to exercise an Option.
(b) Late notices: For American Options, a notice given after the Latest Exercise Time on a Scheduled Trading Day will be effective on the following Scheduled Trading Day in the Exercise Period (if there is one).
(c) Multiple Exercise: Where Multiple Exercise applies, Buyer must specify how many Options it is exercising on each Exercise Date.
(d) Written confirmation of oral notices: Buyer will execute and deliver to Seller a written confirmation confirming any oral exercise within one Scheduled Trading Day however, failure by to provide such confirmation will not affect the validity of an oral notice.
Retrieved from "https://jollycontrarian.com/index.php?title=Template:Nutshell_Equity_Derivatives_3.2&oldid=63834"