The capital charges for the carved out positions are as set out in the table below. As an example of how the calculation would work, if a conventional bank licensee holds 100 shares currently valued at $ 10 each, and also holds an equivalent put option with a strike price of $11, the capital charge would be as follows:
[$ 1,000 x 16%⁵³] minus [($ 11 – $ 10)⁵⁴ x 100] = $ 60
A similar methodology applies to options whose underlying is a foreign currency, an interest rate related instrument or a commodity.

⁵³ 8% specific risk plus 8% general market risk.

⁵⁴ The amount the option is "in the money".