Patent ID: 7805347

Claim:
A method implemented by a computer system comprising: inputting data via a computer system regarding a sale, by a company to an other entity, of a security consisting of: (i) a post-paid forward contract which obligates the other entity to purchase a fixed number of shares stock of the company; and (ii) debt; inputting data via the computer system regarding a purchase, by the company from the other entity, of a pre-paid forward contract which obligates the other entity to deliver to the company a variable number of shares of stock in the company; inputting via the computer system a then-current stock price associated with the stock of the company; calculating via the computer system a number of shares underlying the pre-paid forward contract, based on a formula that is a function of a then-current stock price and a remaining maturity associated with the pre-paid forward contract wherein the formula is pre-specified; recording via the computer system the data regarding the sale, by the company to the other entity, of the security consisting of: (i) the post-paid forward contract; and (ii) the debt; recording via the computer system the data regarding the purchase, by the company from the other entity, of the pre-paid forward contract; and recording via the computer system the calculated number of shares underlying the pre-paid forward contract; wherein the pre-paid forward contract comprises a call option.