Deferred Option Month

  

Categories: Derivatives, Accounting

When marking time waiting for an event to be over, whether it be a school semester, the MLB playoff season, or the end of the latest season of Grey’s Anatomy, one can count the months prior to D-Date.

The deferred option month(s) are the month or months left to go on an option or futures contract prior to expiration.

The deferred option month relative to the current month is used as a metric for time value calculation.

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Finance: What is Deferred Compensation?8 Views

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Finance allah shmoop what is deferred compensation Well you don't

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get it today You get it next year at some

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point you know differed If you've gotten paid today it

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would have binford but then it was deford's so well

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yeah it's money you don't get right now Yeah so

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whywould compensation be deferred Well lotsa reasons think about a

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bonus that a sales person might earn through out the

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year like they get two grand in bonus money payable

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next year for each month that they sell over four

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pounds of yellowcake uranium powder Bob here did it in

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january messed around in february and march and was a

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good boy in april may and june and then on

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lee hit one more sales goal ahead of christmas doing

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four pounds in uzbekistanian november So bob had five months

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hitting his sales bonus target and we'll have owed to

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him ten grand in bonus money e compensation that was

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deferred and noting that all bonuses are paid in january

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of the following year like it's deferred to the following

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year So from the company's perspective they show deferred compensation

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as a line item or a thing on their balance

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Sheet is a liability And then they converted to being

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an expense when they pay everything out the first month

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of the next year so come january Bob will be

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very happy with his healthy bonus That is you know 00:01:29.357 --> [endTime] assuming he's still around to enjoy it there No

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