Patent ID: 8719140
Filing Date: 2014-05-06
Classification: G06Q

Abstract:
1. A method for adjusting provisions of derivative contracts to account for time value of money due to an occurrence of a corporate event that affects the value of the derivative contract, comprising the steps of: receiving, via a processor based computer, financial information regarding an option with limited stock (OWLS) derivative contract representing an economic interest corresponding to a nucleus of at least two shares of an underlying security and a residual interest in stock (RISKS) derivative contract representing an economic interest corresponding to speculation on future gains on the value of said at least two shares of the same underlying security, each derivative contract comprising at least a termination claim of said each derivative contract and the length of said each derivative contract; receiving, via the computer, information identifying a corporate event that affects a value of the derivative contract; adjusting, via the computer, the termination claim of the derivative contract to its present value based at least on the length of time remaining on the derivative contract discounted at a predetermined rate to account for the time value of money; adjusting, via the computer, one or more provisions of the derivative contract based on the adjusted termination claim and a predetermined formula for determining the effect of the corporate event on the derivative contract based on a type of distribution to the underlying security; and storing an adjusted termination claim and an adjusted derivative contract in a database.