The amortized option cost is a percentage equal to:
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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 price 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 price 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 price 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 price 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 price 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.
iShares U.S. Real Estate ETF (iYR on the New York Stock Exchange Arca) is an exchange traded fund that seeks to track the investment performance of an index composed of U.S. equities in the real estate sector.
[The iShares U.S. Real Estate ETF is distributed by BlackRock Investments, LLC. iShares®, BLACKROCK®, and the corresponding logos are registered and unregistered trademarks of BlackRock, Inc. and its affiliates (BlackRock), and these trademarks have been licensed for certain purposes by Great American Life Insurance Company. Great American Life Insurance Company annuity products are not sponsored, endorsed, sold or promoted by BlackRock, and purchasers of an annuity from Great American Life Insurance Company do not acquire any interest in the iShares U.S. Real Estate ETF nor enter into any relationship of any kind with BlackRock. BlackRock makes no representations or warranty, express or implied, to the owners of any Great American Life Insurance Company annuity product or any member of the public regarding the advisability of purchasing an annuity, nor does it have any liability for any errors, omissions, interruptions or use of the iShares U.S. Real Estate ETF or any data related thereto.]