Under Section 2.01 of Notice 2015-73, a transaction is the same as, or substantially similar to, a transaction identified in the notice only if (1) the taxpayer enters into a contract with a counterparty that is denominated as an option contract
; (2) the taxpayer receives a rate of return based upon the performance of the basket; (3) substantially all of the assets in the basket primarily consist of actively traded personal property under Regs.
Teo, "Procurement management using option contracts
: random spot price and the portfolio effect," IIE Transactions, vol.
The court remarked, "So far as the contractual documents are concerned, all there is is the dairy's agreement to sell milk to the districts at a specified price that it cannot raise during the school year: in other words, a buyer's option." (9) Thus, in both Brooklyn Bagel and Modern Dairy, the court found that the contract at issue was a buyer's option contract
The value of the options transactions is not a relevant indicator for the option market, because the transactions value is related to the value of the bonuses negotiated at the market, and they only represent the prices of some contracts, not the prices of the underlying asset to which the option contracts
To execute a transaction an investor can merely call his broker and state, "Please purchase 5 ABC April-60 call option contracts
for my account." A written record of the trade automatically will be sent to the buyer or seller of the option contract
confirming the transaction.
Specific products in the option-type instrument classification include option contracts
, interest rate caps, interest rate floors, fixed rate loan commitments, note issuance facilities, and letters of credit.
(9) The areas identified in FTB Notice 94-5 are (1) defining the beginning and the end of the manufacturing process; (2) clarifying the determination of who is a "qualified taxpayer"; (3) providing specific rules applicable to "turn-key" and other fixed-price construction contracts; (4) further defining "recycling"; (5) further defining "research and development"; (6) clarifying the reporting requirements applicable to successor leases; (7) defining "capitalized labor costs"; (8) defining binding contracts, including option contracts
; and (9) further defining special purpose buildings.
Negative option contracts
for telephone wire maintenance in the Rocky Mountain states prompted a civil antitrust suit.
While agricultural producers and other holders of inventories would generally hedge with the purchase of put option contracts
in order to protect against price declines, a variety of more complex hedging strategies are possible with the options instrument. In general, a farmer would purchase put option contracts
early in each production period and offset or sell his positions after production and marketing decisions were completed.
Horton also acquired control of approximately 550 lots through option contracts
. For the twelve months ended October 31, 2018, Classic closed 238 homes ($75M in revenue) with an average home size of approximately 1,650 square feet and an average sales price of $317,000.
New Delhi: Markets regulator Sebi on Wednesday allowed stock exchanges to introduce cross-currency futures and exchange traded cross-currency option contracts
in multiple currency pairs.
On the other hand, in order to protect against various risks derived from production, demand, and price, option contracts
have been extensively used in many industries such as fashion apparel industry, food processing industry, and automobile industry .