The concept of option correctness ensures that if both parties conform, either the option is not exercised and both retain their collateral, or upon exercise, both parties exchange their respective collateral.
Exercisability is critical; during the transfer, it guarantees that the holder can execute the option without any delays or obstructions, maintaining the active status of the option.
Failure compensation provides a safety net for the holder, ensuring they either successfully exercise the option before expiration, or, if unsuccessful, receive a pre-agreed compensation guarantee from the writer.
Collection
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