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Article 3 Exercise of Options

Section 3.1. General Terms Relating to Exercise

3.1(a) Exercise Period
3.1(b) Exercise Date
3.1(c) Potential Exercise Date
3.1(d) Latest Exercise Time
3.1(e) Expiration Time
3.1(f) Expiration Date

Section 3.3. Multiple Exercise

“Multiple Exercise” crops up in a number of places in the extended ISDA Universe. The canonical definition is “Multiple Exercise” in the 2021 ISDA Interest Rate Derivatives Definitions, but it also shows up in the 2002 ISDA Equity Derivatives Definitions (Multiple Exercise) and the ISDA EU Emissions Annex (Multiple Exercise), in each case getting to the same point, but in marginally different language.

Section 3.4. Automatic Exercise

We have consolidated our commentary on Section 3 into four main pages:

• Section 3.1, being “General Terms Relating to Exercise”
• Section 3.2, being “Procedure for Exercise” (or, for the colloquially-minded, “exercise procedure”).
• Section 3.3, about Multiple Exercise, which only applies really to American and Bermuda Options, since they are the only ones you could conceivably exercise on different dates;
• Section 3.4, being about Automatic Exercise, a provision that ought not to create much fuss or confusion, being as it is, automatic.