An option contract
gives the option holder the right to buy shares of stock at a particular price on a particular date in the future.
Mrugank Paranjape, managing director and chief executive officer, MCX, said the option contract
will provide the physical market participants an excellent product to trade and meet their hedging requirements alongside the existing futures contracts.
Section 2.05 of Notice 2015-73 excludes certain contracts and does not treat a contract as the same, or substantially similar to, the basket option contracts
described in the notice if (1) the contract is traded on a national securities exchange regulated by the SEC or a domestic board of trade regulated by the Commodity Futures Trading Commission or is traded on a foreign exchange subject to regulation by a comparable regulator; or (2) the contract is treated as a contingent payment debt instrument under Regs.
Under the Regulations Governing the Index Options; only the Institutions, TREC Holding Members of PSX and Non-Broker Clearing Member of the NCCPL that are meeting the conditions set in the eligibility criteria are eligible to become Option Writers for which the main idea is to ensure that the Writer of Option Contracts
has sound financial and technical standing to qualify for this mode of trade.
However, above researches did not involve option contracts
and the supply chain agents are risk-neutral.
Even though the same option contracts
were bought at a price that was nearly Rs 40 more than the price at which it was sold 10 minutes ago, there was no significant change in the prices of these options or the underlying stocks during those 10 minutes.
Because of this loophole, Treasury and IRS said they are now identifying a basket option contract
and substantially similar transactions as "listed transactions," which means that those using the strategies must declare them on their tax returns.
Kawasaki Heavy plans to deliver the 100 cars in August 2018 as they were ordered in an option contract
executed on the 2010 base contract ordering 64 cars.
"This is a milestone for DGCX and the introduction of Indian rupee Option Contract
opens vast investment and trading opportunities to Indian and International Investors," said Sudhir Kumar Shetty, chief operating officer, Global Operations, UAE Exchange Centre LLC.
The DME's role as a provider of risk management capabilities was further enhanced through the introduction of eight new DME Oman-linked swap and option contracts
that will help industry participants manage their price risk more effectively in the Middle East and Asia Pacific energy markets.
Trans-Asia Oil and Energy Corporation (Trans-Asia) (TA.PH), a company engaged in petroleum exploration and production, has signed two option contracts
with Frontier Gasfields Private Limited (Frontier Gasfields).