### Question
How is the term nonequity option defined?


### Answer
The term **nonequity option** is defined in *26 U.S.C. § 1256* as the following:

> any listed option which is not an equity option

#### Citation:
  - *26 U.S.C. § 1256*
  - Heading: **Subtitle A-Income Taxes > CHAPTER 1-NORMAL TAXES AND SURTAXES > Subchapter P-Capital Gains and Losses > PART IV-SPECIAL RULES FOR DETERMINING CAPITAL GAINS AND LOSSES**

