Template:Nutshell Equity Derivatives 12.2(d): Difference between revisions
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{{eqderivprov|12.2(d)}} “'''[[Calculation Agent Adjustment (Merger Events) - Equity Derivatives Provision|Calculation Agent Adjustment]]'''”, the {{eqderivprov|Calculation Agent}} must either: <br> | {{eqderivprov|12.2(d)}} “'''[[Calculation Agent Adjustment (Merger Events) - Equity Derivatives Provision|Calculation Agent Adjustment]]'''”, the {{eqderivprov|Calculation Agent}} must either: <br> | ||
:(i) adjust the {{eqderivprov|Transaction}} to account for the economic effect of the {{eqderivprov|Merger Event}} (excluding changes in volatility, expected dividends, stock loan rate or liquidity of the {{eqderivprov|Shares}} or the {{eqderivprov|Transaction}}), or | :(i) adjust the {{eqderivprov|Transaction}} to account for the economic effect of the {{eqderivprov|Merger Event}} (excluding changes in volatility, expected dividends, stock loan rate or liquidity of the {{eqderivprov|Shares}} or the {{eqderivprov|Transaction}}), or | ||
:(ii) if | :(ii) if it considers that that could not produce a [[commercially reasonable]] result, notify the parties that the Transaction will be terminated, in which case {{eqderivprov|Cancellation and Payment}} will apply and any necessary payments will be calculated under Section {{eqderivprov|12.7}} (and for {{eqderivprov|Option Transaction}}s, the {{eqderivprov|Calculation Agent}} must determine the payment as if “{{eqderivprov|Calculation Agent Determination}}” applied); <br> | ||
Revision as of 11:17, 13 October 2017
12.2(d) “Calculation Agent Adjustment”, the Calculation Agent must either:
- (i) adjust the Transaction to account for the economic effect of the Merger Event (excluding changes in volatility, expected dividends, stock loan rate or liquidity of the Shares or the Transaction), or
- (ii) if it considers that that could not produce a commercially reasonable result, notify the parties that the Transaction will be terminated, in which case Cancellation and Payment will apply and any necessary payments will be calculated under Section 12.7 (and for Option Transactions, the Calculation Agent must determine the payment as if “Calculation Agent Determination” applied);