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.
• Bermuda 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. Disappointingly, Bermuda Options don’t disappear without warning when on a routine training mission over Fort Lauder ... HANG ON I HAVE JUST REALISED OH MY GOD

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