Template:Nutshell Equity Derivatives 12.3(c): Difference between revisions
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:{{eqderivprov|12.3(c)}} “'''{{eqderivprov|Calculation Agent Adjustment}}'''”, then, following the {{eqderivprov|Tender Offer Date}} the {{eqderivprov|Issuer}} and the {{eqderivprov|Shares}} will not change, but the {{eqderivprov|Calculation Agent}} shall either: | |||
:{{eqderivprov|12.3(c)}} “'''{{eqderivprov|Calculation Agent Adjustment}}'''”, then, | :(i) adjust the {{eqderivprov|Transaction}} to account for the economic effect of the {{eqderivprov|Tender Offer}} on the {{eqderivprov|Transaction}} (but not solely for changes in volatility, expected [[dividend]]s, stock loan rate or liquidity on the {{eqderivprov|Shares}}), which it may do by reference to corresponding adjustments made by an options exchange to options on the {{eqderivprov|Shares}} and determine the effective date of that adjustment, or | ||
:(i) | :(ii) if it determines that no adjustment under (i) would produce a [[commercially reasonable]] result, notify the parties that the {{eqderivprov|Transaction}} will terminate and “'''{{eqderivprov|Cancellation and Payment}}'''” will apply and will be calculated under Section {{eqderivprov|12.7}} (for {{eqderivprov|Option Transaction}}s as if “'''{{eqderivprov|Calculation Agent Determination}}'''” applied; <br> | ||
:(ii) if | |||
Latest revision as of 16:03, 21 April 2022
- 12.3(c) “Calculation Agent Adjustment”, then, following the Tender Offer Date the Issuer and the Shares will not change, but the Calculation Agent shall either:
- (i) adjust the Transaction to account for the economic effect of the Tender Offer on the Transaction (but not solely for changes in volatility, expected dividends, stock loan rate or liquidity on the Shares), which it may do by reference to corresponding adjustments made by an options exchange to options on the Shares and determine the effective date of that adjustment, or
- (ii) if it determines that no adjustment under (i) would produce a commercially reasonable result, notify the parties that the Transaction will terminate and “Cancellation and Payment” will apply and will be calculated under Section 12.7 (for Option Transactions as if “Calculation Agent Determination” applied;