US2008109386A1PendingUtilityA1

Model option contracts

56
Individually held — no corporate assignee on recordPriority: Jan 15, 2004Filed: Jan 11, 2008Published: May 8, 2008
Est. expiryJan 15, 2024(expired)· nominal 20-yr term from priority
Inventors:Bruce Bradford Thomas
G06Q 40/00G06Q 40/04G06Q 30/0283G06Q 40/06
56
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Claims

Abstract

A method for constructing an option contract so that the option holder has the right to settle the contract by selling it back to the option seller at a settlement price determined by a specified valuation methodology that uses an option pricing model.

Claims

exact text as granted — not AI-modified
1 . A method for determining a Model Option Contract's settlement price, comprising the steps of: 
 a. using said Model Option Contract's specified valuation methodology to identify which option pricing model and input values must be used to determine said settlement price; and    b. using an information system, said Model Option Contract's basic option terms, and said input values to run said option pricing model to determine said settlement price in accordance with said specified valuation methodology.    
   
   
       2 . The method of  claim 1  wherein said Model Option Contract's value is derived from any type of corporeal personal property.  
   
   
       3 . The method of  claim 1  wherein said Model Option Contract's value is derived from any type of equity security.  
   
   
       4 . The method of  claim 1  wherein said Model Option Contract's value is derived from any type of debt instrument.  
   
   
       5 . The method of  claim 1  wherein said Model Option Contract's value is derived from any type of derivative contract.  
   
   
       6 . The method of  claim 1  wherein said Model Option Contract's value is derived from any type of real property.  
   
   
       7 . The method of  claim 1  wherein said Model Option Contract cannot be settled by forcing delivery of an underlying asset.  
   
   
       8 . The method of  claim 1  wherein said basic option terms are specified by referencing another option contract.  
   
   
       9 . A method for constructing a compensation option and determining a settlement price for said option, comprising the steps of: 
 a. specifying basic option terms;    b. expressing a right to settle said compensation option at a price determined by a specified valuation methodology that uses an option pricing model;    c. incorporating said basic option terms, said right to settle, and said specified valuation methodology in said compensation option; and    d. using an information system to run said option pricing model to determine said settlement price in accordance with said specified valuation methodology.    
   
   
       10 . The method of  claim 9  wherein said compensation option derives its value from any type of equity security.  
   
   
       11 . The method of  claim 9  wherein said compensation option derives its value from any type of debt instrument.  
   
   
       12 . The method of  claim 9  wherein said compensation option derives its value from any type of derivative contract.  
   
   
       13 . A method for constructing a contract that will be listed on an exchange and determining a settlement price for said contract, comprising the steps of: 
 a. specifying basic option terms;    b. expressing a right to settle said contract at a price determined by a specified valuation methodology that uses an option pricing model;    c. incorporating said basic option terms, said right to settle, and said specified valuation methodology in said contract;    d. using an information system to run said option pricing model to determine said settlement price in accordance with said specified valuation methodology.    
   
   
       14 . The method of  claim 13  wherein said contract derives its value from any type of equity security.  
   
   
       15 . The method of  claim 13  wherein said contract derives its value from any type of debt instrument.  
   
   
       16 . The method of  claim 13  wherein said contract derives its value from any type of derivative contract.  
   
   
       17 . The method of  claim 13  wherein said contract derives its value from any type of real property.  
   
   
       18 . The method of  claim 13  wherein said contract cannot be settled by forcing delivery of an underlying asset.  
   
   
       19 . The method of  claim 13  wherein said basic option terms are specified by referencing another option contract.  
   
   
       20 . The method of  claim 13  that further comprises the step of: 
 a. using an information system to list said contract for trade, match buyers with sellers, and store transaction information.

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