Template:Nutshell Equity Derivatives 3.2: Difference between revisions

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Section {{eqderivprov|3.2}}. '''{{eqderivprov|Procedure for Exercise}}'''. Except when {{eqderivprov|Automatic Exercise}} applies, {{eqderivprov|Buyer}} must give irrevocable notice (which will be oral telephonic notice if practicable, and otherwise written notice) during the {{eqderivprov|Exercise Period}} to {{eqderivprov|Seller}}, or, if applicable, {{eqderivprov|Seller’s Agent}}, of its exercise of an {{eqderivprov|Option}}. In the case of an {{eqderivprov|American Option}}, if the notice of exercise is given after the {{eqderivprov|Latest Exercise Time}} on a {{eqderivprov|Scheduled Trading Day}}, then that notice will be deemed given on the next following {{eqderivprov|Scheduled Trading Day}}, if any, in the {{eqderivprov|Exercise Period}}. In the case of an {{eqderivprov|American Option}} or a {{eqderivprov|Bermuda Option to which}} {{eqderivprov|Multiple Exercise}} is applicable, {{eqderivprov|Buyer}} must specify in the notice the number of {{eqderivprov|Options}} being exercised on the relevant {{eqderivprov|Exercise Date}}. {{eqderivprov|Buyer}} will execute and deliver to {{eqderivprov|Seller}}, or, if applicable, {{eqderivprov|Seller’s Agent}}, a written confirmation confirming the substance of any telephonic notice within one {{eqderivprov|Scheduled Trading Day}} of that notice. Without limiting the obligation of {{eqderivprov|Buyer}} to provide such written confirmation, failure by {{eqderivprov|Buyer}} to provide it will not affect the validity of the telephonic notice. <br>
{{eqderivprov|3.2}}. '''{{eqderivprov|Procedure for Exercise}}'''. Unless {{eqderivprov|Automatic Exercise}} applies, {{eqderivprov|Buyer}} must give irrevocable notice during the {{eqderivprov|Exercise Period}} to {{eqderivprov|Seller}} to exercise an {{eqderivprov|Option}}. For {{eqderivprov|American Option}}s, a notice given after the {{eqderivprov|Latest Exercise Time}} on a {{eqderivprov|Scheduled Trading Day}} will be effective on the following {{eqderivprov|Scheduled Trading Day}} in the {{eqderivprov|Exercise Period}} (if there is one). Where {{eqderivprov|Multiple Exercise}} applies, {{eqderivprov|Buyer}} must specify how many {{eqderivprov|Options}} it is exercising on each {{eqderivprov|Exercise Date}}. {{eqderivprov|Buyer}} will execute and deliver to {{eqderivprov|Seller}} a written confirmation confirming any oral exercise within one {{eqderivprov|Scheduled Trading Day}} however, failure by to provide such confirmation will not affect the validity of an oral notice. <br>

Revision as of 07:15, 11 May 2022

3.2. Procedure for Exercise. Unless Automatic Exercise applies, Buyer must give irrevocable notice during the Exercise Period to Seller to exercise an Option. For American Options, a notice given after the Latest Exercise Time on a Scheduled Trading Day will be effective on the following Scheduled Trading Day in the Exercise Period (if there is one). Where Multiple Exercise applies, Buyer must specify how many Options it is exercising on each Exercise Date. Buyer will execute and deliver to Seller a written confirmation confirming any oral exercise within one Scheduled Trading Day however, failure by to provide such confirmation will not affect the validity of an oral notice.

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