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Template:Ex amount and coronavirus: Difference between revisions
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To be sure — we men and women of finance being ''[[Homo economicus|homo economici]]'' and everything, you would expect anyone writing that kind of [[put option]] to be pretty categorical about it, and to demand quite some premium for it. | To be sure — we men and women of finance being ''[[Homo economicus|homo economici]]'' and everything, you would expect anyone writing that kind of [[put option]] to be pretty categorical about it, and to demand quite some premium for it. | ||
Yet a cold reading of the {{eqderivprov|Ex Amount}} method (if not modified by some kind of [[Dividend clawback|clawback]]) suggests that it what it does : | Yet a cold reading of the {{eqderivprov|Ex Amount}} method (if not modified by some kind of [[Dividend clawback|clawback]]) suggests that it what it does: | ||
:“''100% of the gross cash dividend per share declared by the {{eqderivprov|Issuer}} to holders of record of a {{eqderivprov|Share}} where the date that the {{eqderivprov|Shares}} have commenced trading “[[ex-dividend]]” on the {{eqderivprov|Exchange}} occurs during the relevant {{eqderivprov|Dividend Period}}''”. | |||
Dunno about you, but I can’t see any contingency on actual {{eqderivprov|Issuer}} payment in there. | |||
The above “cold reading” does not accord with the economic facts as market participants — ''[[Homo economicus|homo economici]]'' all — understand them. The [[JC]] suspects that common sense will prevail and no one will be cavalier enough to take this point. But you just never know, and it is a hard one to crowbar into the present law of contractual [[mistake]]. | The above “cold reading” does not accord with the economic facts as market participants — ''[[Homo economicus|homo economici]]'' all — understand them. The [[JC]] suspects that common sense will prevail and no one will be cavalier enough to take this point. But you just never know, and it is a hard one to crowbar into the present law of contractual [[mistake]]. | ||