Template:M summ Equity Derivatives 2.2

The 2002 ISDA Equity Derivatives Definitions contemplate three kinds of options:

• European Option: you can only exercise on the Exercise Date, usually the Expiry Date of the Transaction.
• American Option: you can exercise on any date during an Exercise Period — so you need also to specify a Commencement Date.
• Bermudan Option: you can exercise on specified Potential Exercise Dates only during an Exercise Period, so while it sort of might help to have a Commencement Date, you don’t strictly need one.

To our way of thinking Americans are best AND YOU DON’T HEAR THE JC SAY THAT VERY OFTEN.

Actually, when it comes to rock ’n’ roll, you do.