Option Style - Equity Derivatives Provision
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- 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 Lauderd ... Hang on a minute maybe that’s OH MY GOD
- The JC’s famous Nutshell™ summary of this clause