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Lets look at an example. When work has been invoiced but payment has not been received, financial assistance in the form of invoice finance can be considered at a price. For tax purposes, the purchase of the offsetting option is a closing transaction because it effectively cancels the option you wrote.
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Timing Risks Imperfect Hedge If Trading is Interrupted In addition to the risks just described which apply generally to the holding and writing of options, there are additional risks unique to trading in index options.
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