FpML Issues Tracker

1346: equityOption automaticExercise and prePayment.

January 25, 2024

closed

Tweak

Have not tried

Schema

none

MAZA

None

Summary

Good afternoon.

In the FpML equityOption scheme, there is the following construction (choice) between two elements: automaticExercise and prePayment.

Everything is clear with automatic exercise.

But regarding the second element of prePayment, do I understand it correctly, that it can be applied when we manually (rather than automatically) exercise option and we already know the amount of exercise costs directly related to exercise and we want to pay these costs in advance ?

 

Thank you. ​

Best regards,

Maksym

Notes:

  • MAZA

    02/27/24 3:36 pm

    UPD: according to ISDA 2002 Equity Derivatives Definitions, Sections 4.2, 8.4 and 8.5 prePayment choice is relevant for equityForward only and not relevant for equityOption schema.

    No longer relevant. Thanks you.

     

     

     

     

     

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