||Equity Derivative Contracts - BoughtOptionPositions
This is the value, as at the relevant date, of equity options the entity has purchased, as determined in accordance with relevant prudential standards.A bought option includes both put and call options that have been purchased by an entity. It provides the purchasing entity with the right but not the obligation to buy or sell a specific amount of the underlying asset at a pre-agreed price, on or before a specific future date.An equity contract is any contract that at least partly transfers the equity risk of an underlying equity security from one party to another.
While not intended as an exhaustive list, Equity derivative contracts may include the following:
- purchased options/warrants; and
- similar derivative contracts based on individual equities or equity indices.
Netting should not be applied when reporting amounts within the Statement of Derivative Activity.