Patent ID: 8165949
Filing Date: 2012-04-24
Classification: G06Q

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