Template:Nutshell Equity Derivatives 11.2(c)

11.2(c) If “Calculation Agent Adjustment” is the Method of Adjustment for a Share Transaction or Share Basket Transaction (or if none is specified) then following the Issuer’s declaration of an Potential Adjustment Event, the Calculation Agent will determine whether the Potential Adjustment Event will concentrate or dilute the value of the Shares. If it will the Calculation Agent may

(i) 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 to account for that dilution or concentration (but it will not adjust just for changes in volatility, expected dividends, stock loan rate or liquidity) and

(ii) determine the effective dates of any adjustments.

In doing so, the Calculation Agent may refer to corresponding adjustments made by an options exchange to corresponding options.