Volatility Agreement definition
Volatility Agreement means, for any Option Tranche, an agreement by one or more dealers that are collectively counterparty to greater than 50% of the notional amount of the options within such Option Tranche (such dealers, the “Agreeing Dealers”, and the dealers for each of the options within such Option Tranche other than the Agreeing Dealers, the “Declining Dealers”) in respect of such Option Tranche with IAC to use an agreed methodology (such methodology as applicable to such Option Tranche, the “Volatility Methodology”) to calculate the Warrant Strike Price Input.
Examples of Volatility Agreement in a sentence
A Forward Volatility Agreement (FVA) is an agreement to buy an option for a specified tenor at a specified price and time in the future.