Type B: A lease in which the lessee is not expected to consume more than an insignificant portion of the economic benefits embedded in the underlying asset
over the lease term.
Option contracts that give the buyer the right to buy an underlying asset
are called "call options", whereas contracts which give the buyer the right to sell the underlying asset
are called "put options".
CBBC is typically issued at a price that represents the difference between the spot price of the underlying asset
and the strike price of the CBBCs, plus a small premium (which is usually the funding cost).
Investors who hold these notes until maturity will typically get back at least some of their investment, even if the underlying asset
, index or benchmark declines.
The performance of underlying asset
influences the option component of the CPU, which determines the participation at maturity.
For each series, the recourse of each party is limited to the charged underlying assets
of that specific series and the parties cannot seek to recover any shortfall by applying for the winding-up of GIFT.
Derivatives are financial investments whose values are derived from an underlying asset
In two of these cases, however, the Ninth Circuit saw an underlying asset
transfer and not merely a transfer of the right to receive income.
The credit quality of the series 2000-1D underlying asset
(the class A and B notes to be issued by Kingfisher Trust No.
Most important, prices established in privately negotiated transactions are not used directly or indiscriminately as the basis for pricing other transactions, so any price distortions would not affect other buyers or sellers of the underlying asset
The preamble notes, however, that NPCs are frequently used to hedge assets or liabilities and, consequently, that the IRS is considering whether to permit taxpayers that hedge assets or liabilities with NPCs to account for the contracts on an integrated basis with the underlying asset
Transactions reasonably expected to generate over $250,000 in tax credits if the taxpayer holds the underlying asset
for 45 days or less.