Template:Nutshell Equity Derivatives 1.44: Difference between revisions
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{{eqderivprov|1.44}}. '''{{eqderivprov|Knock-in Event}}'''. <br> | |||
:(a) If “'''{{eqderivprov|Knock-in Event}}'''” | :(a) If “'''{{eqderivprov|Knock-in Event}}'''” applies, a party’s right to exercise an {{eqderivprov|Option}} under an {{eqderivprov|Transaction}} such {{eqderivprov|Option}} will be conditional upon the {{eqderivprov|Knock-in Event}} occurring on any {{eqderivprov|Knock-in 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-in Event}} as specified in the {{eqderivprov|Confirmation}}. | ||
:(b) “'''{{eqderivprov|Knock-in Event}}'''” | :(b) “'''{{eqderivprov|Knock-in Event}}'''” must be specified in the {{eqderivprov|Confirmation}}. If it is not, but the {{eqderivprov|Confirmation}} specifies a {{eqderivprov|Knock-in Reference Security}} or a {{eqderivprov|Knock-in Price}}, the {{eqderivprov|Knock-in Event}} will occur where the specified {{eqderivprov|Knock-in Reference Security}} is also the specified {{eqderivprov|Index}}, {{eqderivprov|Share}} or {{eqderivprov|Basket}} where, on the {{eqderivprov|Trade Date}}: | ||
::(i) The {{eqderivprov|Knock-in Price}} is greater than the initial level set for the {{eqderivprov|Transaction}} (however described), when the level of the {{eqderivprov|Knock-in Reference Security}}, as of the {{eqderivprov|Knock-in Valuation Time}} on any {{eqderivprov|Knock-in Determination Day}} is at least equal to the {{eqderivprov|Knock-in Price}}; and | |||
::(ii) The {{eqderivprov|Knock-in Price}} is less than the initial level set for the {{eqderivprov|Transaction}} (however described), when the level of the {{eqderivprov|Knock-in Reference Security}} as of the {{eqderivprov|Knock-in Valuation Time}} on any {{eqderivprov|Knock-in Determination Day}} is at most equal to the {{eqderivprov|Knock-in Price}}. | |||
If the parties cannot agree whether a {{eqderivprov|Knock-in Event}} has occurred, the {{eqderivprov|Calculation Agent}} will decide. <br> |