Patent ID: 7908195

Claim:
An information system operative for calculating a settlement price for a Model Option Contract, comprising: a data storage device configured to store information pertaining to the Model Option contract, an option contract that confers a contractual right that enables the option contract's holder to force delivery of a cash settlement price that is determined by using a settlement price determination methodology that is specified in the option contract, the settlement price determination methodology including a description of an option pricing model and input values to be used to run the option pricing model; a computer linked to the data storage device configured to: receive the option pricing model specified in the settlement price determination methodology of the Model Option Contract; receive the input values to be used run the option pricing model as specified in the settlement price determination methodology of the Model Option Contract; and calculate the cash settlement price of the Model Option Contract by using the input values to be used to run the option pricing model as specified in the settlement price determination methodology of the Model Option Contract.