A cash settlement option is treated as an option to buy or sell property. A cash settlement option is any option that on exercise is settled in, or could be settled in, cash or property other than the underlying property.

Dealer equity option. This is any listed option that, for an options dealer:

Is an equity option,

Is bought or granted by that dealer in the

normal course of the dealer’s business activity of dealing in options, and

Is listed on the qualified board of exchange

where that dealer is registered.

An “options dealer” is any person registered with an appropriate national securities exchange as a market maker or specialist in listed options.

Equity option. This is any option:

To buy or sell stock, or

That is valued directly or indirectly by reference to any stock or narrow-based security index.

Equity options include options on a group of stocks only if the group is a narrow-based stock index.

Dealer securities futures contract. For any dealer in securities futures contracts or options on those contracts, this is a securities futures contract (or option on such a contract) that:

Is entered into by the dealer (or, in the case of an option, is purchased or granted by the dealer) in the normal course of the dealer’s activity of dealing in this type of contract (or option), and

Is traded on a qualified board or exchange (as defined under Regulated futures contract, earlier).

A securities futures contract that is not a dealer securities futures contract is treated as described later under Securities Futures Contracts.