Hong Kong Exchanges and Clearing Limited (HKEx) has announced the arrangements for the adjustment to the contract terms of all open Esprit Holdings Limited (ESP) futures and options contracts in existence after the market close on 25 November 2009, the business day immediately before the ex-date, which is 26 November 2009, to account for ESP's proposed special dividend of $1.33 per share.
Highlights of the adjustment arrangements to ESP futures and options contracts are set forth below. Investors should consult their brokers for further details, or if they have any questions regarding the adjustment.
Underlying Stock of the Stock Futures and Stock Options |
Esprit Holdings Limited |
Stock Code |
330 |
Corpor |
Special dividend of $1.33 per share |
Ex-date |
|
ESP Futures
Adjustment Procedures
Adjustment will be made to the open positions of ESP futures
contracts which exist after the market close on
Adjustment Term |
Formula |
Remark |
Adjustment Ratio (AR) |
(Underlying stock closing price - ordinary dividend - special dividend) / (Underlying stock closing price - ordinary dividend) |
Rounded to the nearest four decimal places |
Adjusted Contracted Prices (ACP) |
Contracted prices of outstanding stock futures contract x AR |
Rounded to the nearest two decimal places |
Adjusted Contract Multiplier (ACM) |
(Contracted prices of outstanding stock futures contract x 100 shares) / ACP |
Rounded to the nearest four decimal places |
Parallel Trading
After the market close on
Contract |
Trading Symbol |
Contract Multiplier |
Available for Trading |
Addition of |
Adjusted |
ESA |
ACM |
From the ex-date to |
No |
Standard |
ESP |
100 |
From the ex-date onwards |
Yes |
Investors should note that the cash settlement amount of adjusted and standard futures contracts on the last trading day will be calculated using their respective contract multipliers. There will not be any changes to the number of open positions and other contract terms after the transfer of positions.
ESP Options
Adjustment Procedures
Adjustment will be made to the open positions of ESP option
series which exist after the market close on
Adjustment Term |
Formula |
Remark |
Adjustment Ratio (AR) |
(Underlying stock closing price - ordinary dividend - special dividend) / (Underlying stock closing price - ordinary dividend) |
Rounded to the nearest four decimal places |
Adjusted Exercise Price (AEP) |
Exercise price of outstanding option series x AR |
Rounded to the nearest two decimal places |
Adjusted Contract Size (ACS) |
(Exercise price of outstanding option series x 100 shares) / AEP |
Rounded to the nearest four decimal places |
Parallel Trading
After the market close on
Contract |
Trading Symbol |
Contract Size |
Available for Trading |
Addition of |
Adjusted |
ESA |
ACS |
From the ex-date to |
No |
Standard |
ESP |
100 |
From the ex-date onwards |
Yes |
Investors should note that the cash settlement amount of adjusted and standard option series on the expiry day will be calculated using their respective contract sizes. There will not be any changes to the number of open positions and other contract terms after the transfer of positions.