The document discusses the adjustment of credit default options following a succession event, where Company XYZ and LMN are identified as successor entities. It explains how the credit default options are adjusted into separate contracts for each successor entity, and how the cash settlement amount and premium multiplier are allocated. It also covers the adjustment of credit default basket options and the special risks associated with pricing credit default options.
documents/vol00010-efta01353521-pdf.pdf
{"key_people":["Company XYZ","Company LMN"],"document_type":"legal","document_subtype":"contract","key_organizations":["listing options market"],"reference_numbers":["SDNY_GM_00184117","EFTA01353521"]}