Template:Nutshell Equity Derivatives 9.1: Difference between revisions

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Section {{eqderivprov|9.1}}. '''{{eqderivprov|Physical Settlement of Option Transactions}}'''. In respect of each {{eqderivprov|Exercise Date}} under an {{eqderivprov|Option Transaction}} for which “'''{{eqderivprov|Physical Settlement}}'''” is applicable, on the relevant {{eqderivprov|Settlement Date}}: <br>
{{eqderivprov|9.1}}. '''{{eqderivprov|Physical Settlement of Option Transactions}}'''. For each {{eqderivprov|Exercise Date}} under a {{eqderivprov|Physically-settled}} {{eqderivprov|Option Transaction}}, on the {{eqderivprov|Settlement Date}}: <br>
:(a) in the case of a {{eqderivprov|Call}}, {{eqderivprov|Buyer}} will pay to {{eqderivprov|Seller}} the {{eqderivprov|Settlement Price}} multiplied by the {{eqderivprov|Number of Shares to be Delivered}} or the {{eqderivprov|Number of Baskets to be Delivered}}, as the case may be, (in either case determined without regard to rounding) and {{eqderivprov|Seller}} will deliver to {{eqderivprov|Buyer}} the {{eqderivprov|Number of Shares to be Delivered}} or the {{eqderivprov|Number of Baskets to be Delivered}}, as the case may be, and will pay to {{eqderivprov|Buyer}} the {{eqderivprov|Fractional Share Amount}}, if any; <br>
:(a) '''{{eqderivprov|Call}}s''': {{eqderivprov|Buyer}} will pay {{eqderivprov|Seller}} ''{{eqderivprov|Settlement Price}} x {{eqderivprov|Number of Shares to be Delivered}}'' or ''{{eqderivprov|Settlement Price}} x {{eqderivprov|Number of Baskets to be Delivered}}'' (without regard to rounding) and {{eqderivprov|Seller}} will deliver the {{eqderivprov|Number of Shares to be Delivered}} or {{eqderivprov|Number of Baskets to be Delivered}} and will pay any {{eqderivprov|Fractional Share Amount}} to {{eqderivprov|Buyer}}; <br>
:(b) in the case of a {{eqderivprov|Put}}, {{eqderivprov|Buyer}} will deliver to {{eqderivprov|Seller}} the {{eqderivprov|Number of Shares to be Delivered}} or the {{eqderivprov|Number of Baskets to be Delivered}}, as the case may be, and will pay to {{eqderivprov|Seller}} the {{eqderivprov|Fractional Share Amount}}, if any, and {{eqderivprov|Seller}} will pay to {{eqderivprov|Buyer}} the {{eqderivprov|Settlement Price}} multiplied by the {{eqderivprov|Number of Shares to be Delivered}} or the {{eqderivprov|Number of Baskets to be Delivered}}, as the case may be (in either case determined without regard to rounding); and <br>
:(b) '''{{eqderivprov|Put}}s''': {{eqderivprov|Buyer}} will deliver the {{eqderivprov|Number of Shares to be Delivered}} or the {{eqderivprov|Number of Baskets to be Delivered}}, and pay any {{eqderivprov|Fractional Share Amount}} to {{eqderivprov|Seller}} and {{eqderivprov|Seller}} will pay to {{eqderivprov|Buyer}} ''{{eqderivprov|Settlement Price}} x {{eqderivprov|Number of Shares to be Delivered}}''  or ''{{eqderivprov|Settlement Price}} x {{eqderivprov|Number of Baskets to be Delivered}}'' (without regard to rounding); and <br>
:(c) such payment and such delivery will be made on the relevant {{eqderivprov|Settlement Date}} through the relevant {{eqderivprov|Clearance System}}({{eqderivprov|s}}) at the accounts specified in the related {{eqderivprov|Confirmation}}. <br>
:(c)such payments and deliveries will be made on the {{eqderivprov|Settlement Date}} through the {{eqderivprov|Clearance System}} to the accounts specified in the {{eqderivprov|Confirmation}}. <br>

Revision as of 16:51, 11 May 2022