Template:2002 ISDA Equity Derivatives Definitions 1.45: Difference between revisions

:{{eqderivprov|1.45(a)}} If "{{eqderivprov|Knock-out Event}}" is specified as applicable to a {{eqderivprov|Transaction}}, then unless otherwise <br>specified in the related {{isdaprov|Confirmation}}, a party's right to exercise an {{eqderivprov|Option}} under an {{eqderivprov|Option Transaction}} <br>and its right to receive, or its obligation to make, a payment or delivery under an {{eqderivprov|Option Transaction}} <br>(once exercised or deemed exercised), a {{eqderivprov|Forward Transaction}} or {{eqderivprov|Equity Swap Transaction}} where such <br>right or obligation is subject to a {{eqderivprov|Knock-out Event}} shall be conditional upon the {{eqderivprov|Knock-out Event}} not <br>having occurred on any {{eqderivprov|Knock-out Determination Day}} as of the time of such exercise, deemed exercise, <br>payment or delivery, and the parties shall have any other rights and obligations set forth in the related <br>{{eqderivprov|Confirmation}} from and after the occurrence of the {{eqderivprov|Knock-out Event}}.

:(b) "{{eqderivprov|Knock-out Event}}" means the event or occurrence specified as such in the related <br>{{isdaprov|Confirmation}}. In the event that the related {{isdaprov|Confirmation}} does not specify such an event or occurrence <br>but specifies a {{eqderivprov|Knock-out Reference Security}} and/or a {{eqderivprov|Knock-out Price}}, a {{eqderivprov|Knock-out Event}} shall occur <br>for a {{eqderivprov|Transaction}} for which such {{eqderivprov|Knock-out Reference Security}} is also the {{eqderivprov|Index}}, {{eqderivprov|Share}} or {{eqderivprov|Basket}} <br>specified in the related {{eqderivprov|Confirmation}}: (i) where, on the {{eqderivprov|Trade Date}}, the {{eqderivprov|Knock-out Price}} is greater than <br>the {{eqderivprov|Initial Price}}, {{eqderivprov|Strike Price}}, {{eqderivprov|Forward Price}} or other initial level set for the {{eqderivprov|Transaction}}, when the level, <br>price or amount of the {{eqderivprov|Knock-out Reference Security}} determined as of the {{eqderivprov|Knock-out Valuation Time}} on <br>any Knock-out Determination Day is greater than or equal to the Knock-out Price; and (ii) where, on the <br>Trade Date, the {{eqderivprov|Knock-out Price}} is less than the {{eqderivprov|Initial Price}}, {{eqderivprov|Strike Price}}, {{eqderivprov|Forward Price}} or other initial <br>level set for the {{eqderivprov|Transaction}}, when the level, price or amount of the {{eqderivprov|Knock-out Reference Security}} <br>determined as of the {{eqderivprov|Knock-out Valuation Time}} on any {{eqderivprov|Knock-out Determination Day}} is less than or <br>equal to the {{eqderivprov|Knock-out Price}}. In the event of a dispute between the parties as to whether a Knock-out <br>Event has occurred, the {{eqderivprov|Calculation Agent}} shall determine whether a {{eqderivprov|Knock-out Event}} has occurred. <br>