Individuals who earn remuneration below the SITE threshold are not required to submit a tax return and will thus not be subject to year-end assessment by SARS.
A cat spread is a type of derivative traded on the Chicago Board of Trade (CBOT) that takes the form of an option on a catastrophe futures contract. In other words, a cat spread is basically a call option spread bought by insurance companies on catastrophe futures contracts. Purchasing a cat spread involves buying or selling a call option whose underlying asset is a catastrophe contract, while simultaneously selling or buying the same number of call options at a higher strike price. A cat spread is used by insurance companies to hedge risk coverage of catastrophic events.
Investopedia explains 'Cat Spread'
Let’s say an insurance company buys a cat spread on a catastrophe futures contract with an expectation that the loss ratio on catastrophic events will fall within the range of 20% to 40%. If losses fall within that range, the insurance company would exercise the option and sell the contract, enabling the company to make a profit which will be used to offset the losses. However, if the loss ratio does not fall within the 20% to 40% range, the option will expire at zero and the only thing the company has to lose is the original investment.
Comments by bellamarie
bellamarie commented on the word SITE
SITE
Standard Income Tax on Employees.
Individuals who earn remuneration below the SITE threshold are not required to submit a tax return and will thus not be subject to year-end assessment by SARS.
August 20, 2012
bellamarie commented on the word Time cost
Web definitions:
(time cost) they waste your and the community's time..
tantek.pbworks.com/w/page/19403022/TrollTaxonomy
July 17, 2012
bellamarie commented on the word Cat Spread
Definition of 'Cat Spread'
A cat spread is a type of derivative traded on the Chicago Board of Trade (CBOT) that takes the form of an option on a catastrophe futures contract. In other words, a cat spread is basically a call option spread bought by insurance companies on catastrophe futures contracts. Purchasing a cat spread involves buying or selling a call option whose underlying asset is a catastrophe contract, while simultaneously selling or buying the same number of call options at a higher strike price. A cat spread is used by insurance companies to hedge risk coverage of catastrophic events.
Investopedia explains 'Cat Spread'
Let’s say an insurance company buys a cat spread on a catastrophe futures contract with an expectation that the loss ratio on catastrophic events will fall within the range of 20% to 40%. If losses fall within that range, the insurance company would exercise the option and sell the contract, enabling the company to make a profit which will be used to offset the losses. However, if the loss ratio does not fall within the 20% to 40% range, the option will expire at zero and the only thing the company has to lose is the original investment.
http://www.investopedia.com/terms/c/cat-spread.asp#axzz20JSjpu2N
Read more: http://www.investopedia.com/terms/c/cat-spread.asp#ixzz20JV7lpgD
July 11, 2012