Definitions for Option Transactions - Equity Derivatives Provision
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2002 ISDA Equity Derivatives Definitions A Jolly Contrarian owner’s manual™
2.1 in all its glory
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Overview
Not much to get excited about here — some for prose stylists to get disappointed about, but who cares about them, eh?
Summary
Commencement Date is relevant only for American Options — those which are exercisable at any time during their term,[1] of course, so you do need to know when the term starts — and indeed only appears once in the Equity Derivatives Definitions outside the actual definition in Section 2.1(a). I know what you are thinking, about the perfectly good trees that might be with us today.
The rest of these definitions are mechanical enough almost to go without saying — but that is not how ISDA’s crack drafting squad™ rolls, is it?
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- The JC’s famous Nutshell™ summary of this clause
See also
References
- ↑ To be contrasted with European Options, which are only exercisable on one day — usually expiry.