Definitions

Avviso di Borsa

An official notice issued by Borsa Italiana that regulates interventions.

Corporate Action

There are several types of corporate actions:

• grouping and splitting of the stock underlying the contract;

• free share capital increases and pre-emptive offer through the issuing of new shares of the same categories as those underlying the stock option contract;

• pre-emptive offer through the issuing of new shares of different categories than those underlying the stock option contract, of shares with warrants, convertible bonds and convertible bonds with warrants;

• merger and demerger of companies issuing the shares underlying the contract;

• conversion of shares into another category;

• payment of extraordinary dividends.

The K factor applied to strike prices (or daily closing prices) and/or quantities of shares to be delivered (lot size).

Date in which the provisions on the adjustment intervention become effective.

Lot

Number of shares underlying each derivative contract.

Price of the security on the day before the start of the operation.

Ex-price

Price of the security after the adjustment intervention.

Daily closing price

Daily closing price calculated by the management body of clearing and guarantee system referred to in the provisions implementing article 70 of the Consolidated Law on Finance.

Theoretical Fair Value (TFV)

Methodology to calculate the fair value of open positions on stock option and/or future contracts following the delisting of underlying shares due to Public Tender Offer or Merger.