; and (B) shall use the greater percentage of which the person has— (i) a short interest (as described in section 13(s)(3) of the Act) in a class of equity security; or (ii) a long interest in a class of equity security; and (4) shall calculate beneficial ownership in accordance with subsection (d)(1). (f) For the purposes of this section— (1) the term delta means, with respect to a financial instrument, the proportion that reflects the change in the value of the instrument to the change in the value of the underlying asset; (2) the term derivative instrument — (A) means any— (i) option, warrant, convertible security, stock appreciation right, or similar right— (I) whether or not the right or instrument shall be subjected to settlement in the underlying equity security; and (II) with an exercise, exchange, or conversion privilege, or right to a settlement payment at a price related to an equity security; or (ii) similar instrument with a value derived in whole or in part from the value of an equity security; and (B) does not include— (i) rights of a bona fide pledgee of securities to sell the pledged securities; (ii) rights of all holders of a class of securities of an issuer to receive securities pro rata, or obligations to dispose of securities, as a result of a merger, exchange offer, or consolidation involving the issuer of the securities; (iii) rights or obligations to surrender a security, or to have a security withheld, upon the receipt or exercise of a derivative security or the receipt or vesting of equity securities, in order to satisfy the exercise price or the tax withholding consequences of receipt, exercise, or vesting; (iv) interests in broad-based index options, broad-based index futures, and broad-based publicly traded market baskets of stocks approved for trading by the appropriate authority of the Federal Government; (v) interests or rights to participate in employee benefit plans of the issuer held by employees or former employees of the issuer