Derivative investments are 'derived' from other tradeable securities. The value of derivative investments should be obtained from market reports in the Australian Financial Review and other newspapers.
Futures contracts are:
Exchange traded options are contracts:
There are two types of exchange traded options as described in the following table:
A... |
Gives the holder the right to... |
'call' option |
buy nominated shares. |
'put' option |
sell nominated shares. |
The price at which the option contract can be exercised is:
A warrant is a form of option that gives the holder the right to buy or sell a share at a pre-determined price. Warrants are traded on the Australian Stock Exchange through the same trading system as ordinary shares. The timing for exercising this option can vary as described in the following table:
If a warrant is traded as an... |
Then the holder has the right to buy or sell... |
American-style exercise |
within a fixed period. |
European-style exercise |
on a specified date. |
Endowment warrants:
When the outstanding amount is paid off, the investor gains full ownership of the shares, including capital gains that have accrued during the settlement period.
More ? [4]
A right is an offer of additional shares to existing shareholders, and its market value is typically a small percentage of the value of the company's ordinary shares. Exercising a 'rights' offer increases a pensioner's shareholding, and therefore, the total value of their financial assets for deeming purposes.
More ? [5]
A share ratio is based on the performance of an individual share against the All Ordinaries Index.
More ? [6]
A share ratio contract:
Assessment of exchange traded options
9.5.5/Deemed Income from Listed Securities, Derivative Investments & Foreign Shareholdings [7]
Assessment of exchange traded options
9.5.5/Deemed Income from Listed Securities, Derivative Investments & Foreign Shareholdings [7]
Assessment of endowment warrants
9.5.5/Deemed Income from Listed Securities, Derivative Investments & Foreign Shareholdings [7]
Assessment of rights
9.5.5/Deemed Income from Listed Securities, Derivative Investments & Foreign Shareholdings [7]
Assessment of share ratio contracts
9.5.5/Deemed Income from Listed Securities, Derivative Investments & Foreign Shareholdings [7]
Links
[1] https://clik.dva.gov.au/user/login?destination=node/15982%23comment-form
[2] https://clik.dva.gov.au/book/export/html/15982#tgt-cspol_part9_ftn507
[3] https://clik.dva.gov.au/book/export/html/15982#tgt-cspol_part9_ftn508
[4] https://clik.dva.gov.au/book/export/html/15982#tgt-cspol_part9_ftn509
[5] https://clik.dva.gov.au/book/export/html/15982#tgt-cspol_part9_ftn510
[6] https://clik.dva.gov.au/book/export/html/15982#tgt-cspol_part9_ftn511
[7] https://clik.dva.gov.au/compensation-and-support-policy-library/part-9-principles-determining-pension-rate/95-deeming-provisions/955-deeming-shares-investments
[8] https://clik.dva.gov.au/book/export/html/15982#ref-cspol_part9_ftn507
[9] https://clik.dva.gov.au/book/export/html/15982#ref-cspol_part9_ftn508
[10] https://clik.dva.gov.au/book/export/html/15982#ref-cspol_part9_ftn509
[11] https://clik.dva.gov.au/book/export/html/15982#ref-cspol_part9_ftn510
[12] https://clik.dva.gov.au/book/export/html/15982#ref-cspol_part9_ftn511