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variable prepaid forwards

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02:19 Mar 5, 2004
English to Chinese translations [PRO]
Bus/Financial - Finance (general)
English term or phrase: variable prepaid forwards
Though complex and often expensive, monetization strategies have gained appeal as the skeleton key that will unlock wealth immured in a wide range of illiquid securities. Among the most popular of these tools are: zero-premium collars, a strategy, often called a costless collar, that uses equity options to limit the stockholder’s exposure to the stock’s price fluctuations; variable prepaid forwards, essentially, a loan combined with a collar; and exchange funds, where several shareholders pool their different stocks to achieve a diversified portfolio.
可变预付期权??
clearwater
China
Local time: 10:18
Chinese translation:.
Explanation:
可变/不定预售期权

A variable forward is a contract to sell a specific value of a security in the future. This means that the number of shares to be delivered at maturity will depend on the shares' stock price at maturity. Specifically, you will have to deliver more shares if the price at maturity is lower than today's price, and fewer shares if the price at maturity is higher than today's price. However, the quantity is subject to a predetermined minimum and maximum, which replicate the economics of a collar.
When a variable contract matures and you deliver your shares, the delivery of the shares will trigger a capital gains tax. The hedge stops the holding period clock, so if you hold the stock for less than one year before constructing the hedge, your gain on the stock will be treated as a short-term capital gain and taxed at 35%. If you hold the stock for more than one year before you construct the hedge, your gain will be treated as a long-term capital gain and taxed at only 15%.
Example: Suppose you wish to hedge 10,000 shares of your fictitious CaliforniaSolar stock, which is selling for $100 per share (with a $1 cost basis). You want your variable forward to replicate a collar in which the put is struck at $100 and the call at $120. To accomplish this, you could enter the following variable forward contract: The dealer agrees to pay you $1 million upon expiration of the contract, and you agree to deliver $1 million worth of shares to the dealer.
http://66.102.11.104/search?q=cache:P9Cg4JO5kDsJ:www.mystock...

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Note added at 2004-03-07 03:44:56 (GMT)
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期权
一种双边协议,规定其中的一方授予对方在约定的条件下购买或者售卖一项资产的权利,而由授权方承担售卖或者购买的责任义务。有权决定是否行使的一方称为期权的买方,他为获得这种特权必须支付一定的费用;授予别人购买或者售卖资产权利的一方称为期权的卖方或者出票方。期权分为:买入期权和卖出期权两种基本形式。
期权分为现货期权和期货期权。以现货为交易目的的期权叫现货期权;以期货合约为交易目的的期权叫期货期权。目前在期货市场交易的现货期权主要有股票期权、股指期权。绝大多数期权属于期货期权。
http://www.dce.com.cn/research/option1.pdf

我想这里是讲股票,应该翻译成“期权”。


--------------------------------------------------
Note added at 2004-03-07 04:09:51 (GMT)
--------------------------------------------------

也有说“股指期货”的:
http://www.dhfutures.com/college/college3.asp

--------------------------------------------------
Note added at 2004-03-07 05:11:16 (GMT)
--------------------------------------------------

也有说“股指期货”的:
http://www.dhfutures.com/college/college3.asp
Selected response from:

Yuejun LIU
Local time: 10:18
Grading comment
谢谢!
4 KudoZ points were awarded for this answer

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Summary of answers provided
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Yuejun LIU


Discussion entries: 1





  

Answers


1 hr   confidence: Answerer confidence 1/5Answerer confidence 1/5
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Explanation:
可变/不定预售期权

A variable forward is a contract to sell a specific value of a security in the future. This means that the number of shares to be delivered at maturity will depend on the shares' stock price at maturity. Specifically, you will have to deliver more shares if the price at maturity is lower than today's price, and fewer shares if the price at maturity is higher than today's price. However, the quantity is subject to a predetermined minimum and maximum, which replicate the economics of a collar.
When a variable contract matures and you deliver your shares, the delivery of the shares will trigger a capital gains tax. The hedge stops the holding period clock, so if you hold the stock for less than one year before constructing the hedge, your gain on the stock will be treated as a short-term capital gain and taxed at 35%. If you hold the stock for more than one year before you construct the hedge, your gain will be treated as a long-term capital gain and taxed at only 15%.
Example: Suppose you wish to hedge 10,000 shares of your fictitious CaliforniaSolar stock, which is selling for $100 per share (with a $1 cost basis). You want your variable forward to replicate a collar in which the put is struck at $100 and the call at $120. To accomplish this, you could enter the following variable forward contract: The dealer agrees to pay you $1 million upon expiration of the contract, and you agree to deliver $1 million worth of shares to the dealer.
http://66.102.11.104/search?q=cache:P9Cg4JO5kDsJ:www.mystock...

--------------------------------------------------
Note added at 2004-03-07 03:44:56 (GMT)
--------------------------------------------------

期权
一种双边协议,规定其中的一方授予对方在约定的条件下购买或者售卖一项资产的权利,而由授权方承担售卖或者购买的责任义务。有权决定是否行使的一方称为期权的买方,他为获得这种特权必须支付一定的费用;授予别人购买或者售卖资产权利的一方称为期权的卖方或者出票方。期权分为:买入期权和卖出期权两种基本形式。
期权分为现货期权和期货期权。以现货为交易目的的期权叫现货期权;以期货合约为交易目的的期权叫期货期权。目前在期货市场交易的现货期权主要有股票期权、股指期权。绝大多数期权属于期货期权。
http://www.dce.com.cn/research/option1.pdf

我想这里是讲股票,应该翻译成“期权”。


--------------------------------------------------
Note added at 2004-03-07 04:09:51 (GMT)
--------------------------------------------------

也有说“股指期货”的:
http://www.dhfutures.com/college/college3.asp

--------------------------------------------------
Note added at 2004-03-07 05:11:16 (GMT)
--------------------------------------------------

也有说“股指期货”的:
http://www.dhfutures.com/college/college3.asp


    Reference: http://66.102.11.104/search?q=cache:P9Cg4JO5kDsJ:www.mystock...
Yuejun LIU
Local time: 10:18
Works in field
Native speaker of: Native in ChineseChinese
PRO pts in category: 26
Grading comment
谢谢!
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