Template:M summ Equity Derivatives 3
Section 3.1
Expiration Time
As will be obvious when you stop to think about it, an Expiration Time[1] is only germane for Option Transactions, which are prone to expire in a way that Equity Swap Transactions terminate (if indeed they even do that, he says, thinking wistfully of the synthetic equity swaps world.
Section 3.2
All good mechanical stuff for legal eagle completists and those who have trouble sleeping. If you get into a dispute about this provision, you are truly beyond hope.
Section 3.3
“...may not exercise less than the Minimum Number of Options”? Oh, ISDA’s crack drafting squad™, how could you?
It’s fewer.
Eheu.
Section 3.4
One where Stockholm syndrome has us almost loving the monster. There is a bitter beauty in these pointless, craggy ornaments.
What this one does is ensure that, if you have selected Automatic Exercise, that your options will be exercised, without the need for you to do anything if they are at, or in, the money. But don’t that that stop the ’squad going epic with it. This is Iwo Jima-league courage under fire.
- ↑ Couldn’t they have called it an Expiry Time, by the way?