The amortized option cost is a percentage equal to:
| ||1) || |
the net option value for the Strategy at the start of the Term; multiplied by
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the number of days remaining until the final Market Close of the Term divided by 365.
ATM Call Option
The ATM Call Option is a hypothetical call option that will pay the holder an amount equal to the percentage increase, if any, in the index value from the last Market Close on or before the start of the Term to the final Market Close of the Term.
ATM Put Option
The ATM Put Option is a hypothetical put option that will pay the holder an amount equal to the percentage decrease, if any, in the index value from the last Market Close on or before the start of the Term to the final Market Close of the Term.
The ATM Call Option and ATM Put Option are valued by us using a market standard model for valuing an option. Each value is stated as a percentage of the index value at the last Market Close on or before the first day of the Term.
Upside Participation Rate
The Upside Participation Rate is the portion of the increase in the index value for a Term taken into account to determine the Gain for the Term. We will set the Upside Participation Rate for each initial or renewal Term of this Strategy before the first day of that Term. For a given Term, we may set a different Upside Participation Rate for amounts attributable to Purchase Payments received on different dates.
Downside Participation Rate
The Downside Participation Rate is the portion of the decrease in the index value for a Term taken into account to determine the Loss for the Term. The Downside Participation Rate for each Term of this Strategy is [50%].
Trading Cost is the estimated cost of selling the hypothetical option before the end of a Term. It is a percentage set by us from time to time to reflect the average difference between the Option Values and market bid prices.
A Market Close for this Strategy is the close of regular trading on the New York Stock Exchange on each day that is a Market Day.
The S&P 500® Index is the Standard & Poors 500TM Index. It excludes any dividends that may be paid by the firms that comprise the Index.
[The S&P 500 Index is a product of S&P Dow Jones Indices LLC (SPDJI), and has been licensed for use by Great American Life Insurance Company®. Standard & Poors®, S&P® and S&P 500® are registered trademarks of Standard & Poors Financial Services LLC (S&P); Dow Jones® is a registered trademark of Dow Jones Trademark Holdings LLC (Dow Jones); and these trademarks have been licensed for use by SPDJI and sublicensed for certain purposes by Great American Life Insurance Company. Great American Life Insurance Companys products and this Crediting Strategy are not sponsored, endorsed, sold or promoted by SPDJI, Dow Jones, S&P, any of their respective affiliates (collectively, S&P Dow Jones Indices). S&P Dow Jones Indices makes no representation or warranty, express or implied to the owners of Great American Life Insurance Companys products or any member of the public regarding the advisability of investing in securities generally or in Great American Life Insurance Companys products or this Crediting Strategy particularly or the ability of the S&P 500 Index to track general market performance. S&P Dow Jones