Binomial option pricing model and Grandfather: Difference between pages

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imported>Doug Williamson
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imported>Doug Williamson
m (Restore months to reference to The Treasurer.)
 
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(BOPM).  
To exempt pre-existing arrangements from subsequent more restrictive laws or regulation.


An option pricing model which assumes a binomial tree of possible underlying asset market prices.
Grandfathering may be applied for the full natural life of pre-existing arrangements, or for a more limited period which is considered long enough to allow new and compliant arrangements to be put in place.




== See also ==
'''Example'''
* [[Binomial]]
 
* [[Option]]
''The Internal Revenue Service is extending the grandfathering protection for non-US arrangements caught under the Foreign Account Tax Compliance Act (FATCA). The protection is extended from 1 January 2013
* [[Black Scholes option pricing model]]
''to six months after the regulations are finalised, estimated to be July 2013 at the earliest. FATCA imposes US withholding taxes and significant compliance obligations on financial institutions such as banks and insurance companies.'' ''(The Treasurer December 2012/January 2013).''
 
 
== See also==
* [[FATCA]]
 
 
==Other links==
[http://www.treasurers.org/node/9713 Feeling the force of FATCA, The Treasurer, December 2013/January 2014]
 
[[Category:Compliance_and_audit]]
[[Category:Accounting,_tax_and_regulation]]

Revision as of 16:46, 17 April 2014

To exempt pre-existing arrangements from subsequent more restrictive laws or regulation.

Grandfathering may be applied for the full natural life of pre-existing arrangements, or for a more limited period which is considered long enough to allow new and compliant arrangements to be put in place.


Example

The Internal Revenue Service is extending the grandfathering protection for non-US arrangements caught under the Foreign Account Tax Compliance Act (FATCA). The protection is extended from 1 January 2013 to six months after the regulations are finalised, estimated to be July 2013 at the earliest. FATCA imposes US withholding taxes and significant compliance obligations on financial institutions such as banks and insurance companies. (The Treasurer December 2012/January 2013).


See also


Other links

Feeling the force of FATCA, The Treasurer, December 2013/January 2014