C2.1015 Cash-settled options
Special rules1 cover the treatment of the grantor or grantee on the exercise of a cash-settled option. These rules modify the treatment of the parties to an option2 as detailed in C2.1007 and C2.1008. A cash-settled option is an option whose nature is such that the grantor is liable to make, and the person exercising it is entitled to receive, a payment in full settlement of all obligations under the option3.
Treatment of grantor of the option
In such cases, the grantor of a cash-settled option is treated as having disposed of an asset consisting
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