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Range accrual is an exotic option whereby the payout of interest on the notional amount of the option is determined by the range of an external range rate (e.g. LIBOR) over the life of the option.
Financial institutions, corporations, and individuals who enter into range accrual contracts may be required to file US range accrual annual.
To fill out US range accrual annual, you will need to provide information about the range accrual contracts entered into, including the notional amount, range rates, and payout terms.
The purpose of US range accrual annual is to report on range accrual contracts entered into by taxpayers for tax compliance purposes.
Information such as the notional amount, range rates, and payout terms of range accrual contracts must be reported on US range accrual annual.
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