Template:Nutshell Equity Derivatives 11.2(b): Difference between revisions
Jump to navigation
Jump to search
Amwelladmin (talk | contribs) No edit summary |
Amwelladmin (talk | contribs) No edit summary |
||
| Line 1: | Line 1: | ||
:{{eqderivprov|11.2(b)}} If the {{eqderivprov|Method of Adjustment}} for a {{eqderivprov|Share Transaction}} or {{eqderivprov|Share Basket Transaction}} is “'''{{eqderivprov|Options Exchange Adjustment}}'''” then following any adjustment to terms of options on {{eqderivprov|Shares}} traded on any {{eqderivprov|Options Exchange}}, the {{eqderivprov|Calculation Agent}} will adjust any of the {{eqderivprov|Initial Price}}, {{eqderivprov|Strike Price}}, {{eqderivprov|Equity Notional Amount}}, {{eqderivprov|Number of Shares}}, {{eqderivprov|Number of Options}}, {{eqderivprov|Option Entitlement}}, {{eqderivprov|Knock-in Price}}, {{eqderivprov|Knock-out Price}}, {{eqderivprov|Forward Price}}, {{eqderivprov|Forward Floor Price}}, or {{eqderivprov|Forward Cap Price}} and any other relevant variable under that {{eqderivprov|Transaction}} as the {{eqderivprov|Calculation Agent}} thinks necessary], effective as of the effective date of the corresponding adjustment made by the {{eqderivprov|Options Exchange}}. | :{{eqderivprov|11.2(b)}} If the {{eqderivprov|Method of Adjustment}} for a {{eqderivprov|Share Transaction}} or {{eqderivprov|Share Basket Transaction}} is “'''{{eqderivprov|Options Exchange Adjustment}}'''” then following any adjustment to terms of options on {{eqderivprov|Shares}} traded on any {{eqderivprov|Options Exchange}}, the {{eqderivprov|Calculation Agent}} will adjust any of the {{eqderivprov|Initial Price}}, {{eqderivprov|Strike Price}}, {{eqderivprov|Equity Notional Amount}}, {{eqderivprov|Number of Shares}}, {{eqderivprov|Number of Options}}, {{eqderivprov|Option Entitlement}}, {{eqderivprov|Knock-in Price}}, {{eqderivprov|Knock-out Price}}, {{eqderivprov|Forward Price}}, {{eqderivprov|Forward Floor Price}}, or {{eqderivprov|Forward Cap Price}} and any other relevant variable under that {{eqderivprov|Transaction}} as the {{eqderivprov|Calculation Agent}} thinks necessary], effective as of the effective date of the corresponding adjustment made by the {{eqderivprov|Options Exchange}}. | ||
If options on the {{eqderivprov|Shares}} are not | :If options on the {{eqderivprov|Shares}} are not traded on an {{eqderivprov|Options Exchange}}, the {{eqderivprov|Calculation Agent}} will adjust the {{eqderivprov|Transaction}} as it thinks fit, by reference to the {{eqderivprov|Options Exchange}}’s rules, to account for the dilution or concentration created by any event that would have led to an {{eqderivprov|Options Exchange}} adjustment had such options been traded on it. <br> | ||
Revision as of 17:07, 3 September 2018
- 11.2(b) If the Method of Adjustment for a Share Transaction or Share Basket Transaction is “Options Exchange Adjustment” then following any adjustment to terms of options on Shares traded on any Options Exchange, the Calculation Agent will adjust any of the Initial Price, Strike Price, Equity Notional Amount, Number of Shares, Number of Options, Option Entitlement, Knock-in Price, Knock-out Price, Forward Price, Forward Floor Price, or Forward Cap Price and any other relevant variable under that Transaction as the Calculation Agent thinks necessary], effective as of the effective date of the corresponding adjustment made by the Options Exchange.
- If options on the Shares are not traded on an Options Exchange, the Calculation Agent will adjust the Transaction as it thinks fit, by reference to the Options Exchange’s rules, to account for the dilution or concentration created by any event that would have led to an Options Exchange adjustment had such options been traded on it.