<OptionExerciseMakeWholeProvision> Component Block

OptionExerciseMakeWholeProvision is a subcomponent of the OptionExercise component used to specify the set of rules of maintaining balance when an option is exercised.

A "make whole" provision seeks to penalize the the option buyer, i.e. make the seller "whole", if the buyer exercises the option prior to the make whole date, e.g. the early call date of a convertible bond.

Used in :

<OptionExercise>

Tag	Field Name	FIXML	Req'd	Comments
42591	MakeWholeDate	@Dt	N	The date through which option cannot be exercised without penalty.
42592	MakeWholeAmount	@Amt	N	Amount to be paid by the buyer of the option if the option is exercised prior to the MakeWholeDate(42591).
42593	MakeWholeBenchmarkCurveName	@Name	N	Identifies the benchmark floating rate index.
42594	MakeWholeBenchmarkCurvePoint	@Point	N	The point on the floating rate index curve. Sample values: M = combination of a number between 1-12 and an "M" for month, e.g. 3M Y = combination of number between 1-100 and a "Y" for year, e.g. 10Y 10Y-OLD = see above, then add "-OLD" when appropriate INTERPOLATED = the point is mathematically derived 2/2031 5 3/8 = the point is stated via a combination of maturity month / year and coupon.
42595	MakeWholeRecallSpread	@Spread	N	Spread over the floating rate index.
42596	MakeWholeBenchmarkQuote	@Qte	N	The quote side of the benchmark to be used for calculating the "make whole" amount.
42597	MakeWholeInterpolationMethod	@IntrpltnMeth	N	The method used when calculating the "make whole" amount. The most common is linear method.

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