Template:Nutshell Equity Derivatives 2.3(a): Difference between revisions

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(Created page with ":{{eqderivprov|2.3(a)}} '''{{eqderivprov|Call}}'''. “'''{{eqderivprov|Call}}'''” is an {{eqderivprov|Option Transaction}} where the {{eqderivprov|Buyer}}: <br> ::(i) '''{{...")
 
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:{{eqderivprov|2.3(a)}} '''{{eqderivprov|Call}}'''. “'''{{eqderivprov|Call}}'''” is an {{eqderivprov|Option Transaction}} where the {{eqderivprov|Buyer}}: <br>
:{{eqderivprov|2.3(a)}} '''{{eqderivprov|Call}}'''. A “'''{{eqderivprov|Call}}'''” is an {{eqderivprov|Option Transaction}} where the {{eqderivprov|Buyer}}: <br>
::(i) '''{{eqderivprov|Cash Settlement}}''': if the {{eqderivprov|Settlement Price}} exceeds the {{eqderivprov|Strike Price}}, exercise a {{eqderivprov|cash-settled}} {{eqderivprov|Call}} to receive an {{eqderivprov|Option Cash Settlement Amount}} from {{eqderivprov|Seller}}; and <br>
::(i) '''{{eqderivprov|Cash Settlement}}''': may exercise a {{eqderivprov|cash-settled}} {{eqderivprov|Call}} if the {{eqderivprov|Settlement Price}} exceeds the {{eqderivprov|Strike Price}}, to receive an {{eqderivprov|Option Cash Settlement Amount}} from {{eqderivprov|Seller}}; and <br>
::(ii) '''{{eqderivprov|Physical Settlement}}''': where the {{eqderivprov|Call}} is {{eqderivprov|physically-settled}}, purchase {{eqderivprov|Shares}} (or {{eqderivprov|Baskets}}) from {{eqderivprov|Seller}} at the {{eqderivprov|Settlement Price}}, <br>
::(ii) '''{{eqderivprov|Physical Settlement}}''': where the {{eqderivprov|Call}} is {{eqderivprov|physically-settled}}, buy {{eqderivprov|Shares}} (or {{eqderivprov|Basket}}s) from {{eqderivprov|Seller}} at the {{eqderivprov|Settlement Price}}, <br>