bellamarie

Comments by bellamarie

• bellamarie commented on the word SITE

  SITE

  Standard Income Tax on Employees.

  Individuals who earn remuneration below the SITE threshold are not required to submit a tax return and will thus not be subject to year-end assessment by SARS.

  August 20, 2012

• bellamarie commented on the word Time cost

  Web definitions:

  (time cost) they waste your and the community's time..

  tantek.pbworks.com/w/page/19403022/TrollTaxonomy

  July 17, 2012

• bellamarie commented on the word Cat Spread

  Definition of 'Cat Spread'

  A cat spread is a type of derivative traded on the Chicago Board of Trade (CBOT) that takes the form of an option on a catastrophe futures contract. In other words, a cat spread is basically a call option spread bought by insurance companies on catastrophe futures contracts. Purchasing a cat spread involves buying or selling a call option whose underlying asset is a catastrophe contract, while simultaneously selling or buying the same number of call options at a higher strike price. A cat spread is used by insurance companies to hedge risk coverage of catastrophic events.

  Investopedia explains 'Cat Spread'

  Let’s say an insurance company buys a cat spread on a catastrophe futures contract with an expectation that the loss ratio on catastrophic events will fall within the range of 20% to 40%. If losses fall within that range, the insurance company would exercise the option and sell the contract, enabling the company to make a profit which will be used to offset the losses. However, if the loss ratio does not fall within the 20% to 40% range, the option will expire at zero and the only thing the company has to lose is the original investment.

  http://www.investopedia.com/terms/c/cat-spread.asp#axzz20JSjpu2N

  Read more: http://www.investopedia.com/terms/c/cat-spread.asp#ixzz20JV7lpgD

  July 11, 2012