Template:Nutshell Equity Derivatives 7.3

7.3. “Settlement Price” means, for any Valuation Date:

7.3(a) Cash-settled Share Option Transactions or Share Forward Transactions: the price per Share the Calculation Agent determines as provided under the Confirmation as of the Valuation Time on the Valuation Date or, if not so provided that the Settlement Price will be:

(i) for any Share on an “open outcry” Exchange that has a tradable price at the Valuation Time the price per Share at that Valuation Time, as reported by the Exchange; and

(ii) for any Share on a dealer Exchange or quotation system, the mid-point of the highest bid and lowest ask prices quoted at or immediately before the Valuation Time on the Valuation Date without regard to quotations that “lock” or “cross” the exchange or system;

7.3(b) Cash-settled Share Basket Option Transactions and Share Basket Forward Transactions: The Calculation Agent will determine the Settlement Price for the Basket according to the formula specified in the Confirmation or, if not specified, by adding the values for each Share in the Basket: Relevant Price x Number of Shares

7.3(c) Physically-settled Share Option Transactions and Share Basket Option Transactions: the Strike Price;

7.3(d) Index Option Transactions and Index Forward Transactions: The Calculation Agent will determine the level of the Index per the method in the Confirmation as of the Valuation Time on the Valuation Date or, if there is no such method, as the level of the Index at the Valuation Time on the Valuation Date; and

7.3(e) Index Basket Option Transactions and Index Basket Forward Transactions: the Calculation Agent will determine an amount for the Basket per the method in the Confirmation at the Valuation Times on the Valuation Date or, if no method is provided, as an amount for the Basket equal to the weighted sum of the Relevant Prices for the Indices in the Basket.