Basket Party Agreement Form 2025

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Basket contract transactions or substantially similar transaction (collectively basket transactions) involve use of options (or other derivative contracts) structured to defer income and convert short-term capital gains (STCG) into long-term capital gains (LTCG).
In the context of: Finance, basket is business jargon for a maximum dollar amount for a specific exception to a covenant restriction in a financing agreement.
Some examples of basket options include options on a portfolio and index options. if they own a call on a basket of currencies, but no longer want to buy those currencies, they could buy a put option on a similar basket of currencies to net out (or mostly net out) the effects of the first option.
The basket establishes a monetary threshold. Until the amount of the indemnified partys losses exceeds the monetary threshold (the basket), the indemnifying party has no indemnification obligations under the agreement. Baskets can be structured in three different ways: Tipping basket or first dollar threshold.
A rookie or first-year player earns approximately $61,500 for a 10-day contract. A veteran with 10+ years of experience earns around $190,000 for the same deal.