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Template:Nutshell Equity Derivatives 11.2(b): Difference between revisions
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Template:Nutshell Equity Derivatives 11.2(b) (view source)
Revision as of 17:06, 3 September 2018
, 3 September 2018no edit summary
Amwelladmin (talk | contribs) (Created page with " ::(i) adjust any of the {{eqderivprov|Initial Price}}, {{eqderivprov|Strike Price}}, {{eqderivprov|Equity Notional Amount}}, {{eqderivprov|Number of Shares}}, {{eqderivpro...") |
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:{{eqderivprov|11.2(b)}} If the {{eqderivprov|Method of Adjustment}} for a {{eqderivprov|Share Transaction}} or {{eqderivprov|Share Basket Transaction}} is “'''{{eqderivprov|Options Exchange Adjustment}}'''” then following any adjustment to terms of options on {{eqderivprov|Shares}} traded on any {{eqderivprov|Options Exchange}}, the {{eqderivprov|Calculation Agent}} will adjust any of the {{eqderivprov|Initial Price}}, {{eqderivprov|Strike Price}}, {{eqderivprov|Equity Notional Amount}}, {{eqderivprov|Number of Shares}}, {{eqderivprov|Number of Options}}, {{eqderivprov|Option Entitlement}}, {{eqderivprov|Knock-in Price}}, {{eqderivprov|Knock-out Price}}, {{eqderivprov|Forward Price}}, {{eqderivprov|Forward Floor Price}}, or {{eqderivprov|Forward Cap Price}} and any other relevant variable under that {{eqderivprov|Transaction}} as the {{eqderivprov|Calculation Agent}} thinks necessary], effective as of the effective date of the corresponding adjustment made by the {{eqderivprov|Options Exchange}}. | |||
If options on the {{eqderivprov|Shares}} are not so traded, the {{eqderivprov|Calculation Agent}} will adjust the relevant variables of the {{eqderivprov|Transaction}} as it thinks fit, by reference to the {{eqderivprov|Options Exchange}}’s rules, to account for the dilution or concentration caused by any event that would have led to an adjustment on the {{eqderivprov|Options Exchange}} had such options been traded on it. <br> | |||