Commonwealth Consolidated Acts Commonwealth Consolidated ActsOption to buy foreign currency
(1) The following table applies to an option to buy a particular * foreign currency if the exercise price is payable in another foreign currency:
Option to buy foreign currency | |||
Item | If you are... | and both of these events happen when the option is exercised... | this is the result... |
1 | the entity who is capable of exercising the option | (a) forex realisation event 1; (b) forex realisation event 4 | ignore forex realisation event 4. |
2 | the entity who is capable of exercising the option | (a) forex realisation event 2; (b) forex realisation event 4 | ignore forex realisation event 4. |
3 | the entity who granted the option | (a) forex realisation event 3; (b) forex realisation event 4 | ignore forex realisation event 3. |
Option to sell foreign currency
(2) The following table applies to an option to sell a particular * foreign currency if the exercise price is payable in another foreign currency:
Option to sell foreign currency | |||
Item | If you are... | and both of these events happen when the option is exercised... | this is the result... |
1 | the entity who is capable of exercising the option | (a) forex realisation event 3; (b) forex realisation event 5 | ignore forex realisation event 3. |
2 | the entity who granted the option | (a) forex realisation event 3; (b) forex realisation event 4 | ignore forex realisation event 3. |
Forward contracts
(3) The following table applies to a contract to buy a particular * foreign currency in return for another foreign currency:
Forward contracts | ||
Item | If both of these events happen when the contract is carried out... | this is the result... |
1 | (a) forex realisation event 1; (b) forex realisation event 4 | ignore forex realisation event 4. |
2 | (a) forex realisation event 2; (b) forex realisation event 4 | ignore forex realisation event 4. |
Residual rule
(4) If:
(a) 2 or more of forex realisation events 1, 2, 3, 4 and 5 happen to you at the same time in relation to the same rights and/or obligations; and
(b) none of the above subsections applies;
apply the forex realisation event that is most appropriate, and ignore the remaining event or events.