return of the same or substantially identical securities transferred in a securities lending transaction, sale-repurchase transaction, or similar financing transaction. (4) Options received in connection with the performance of services For purposes of this part, the term derivative shall not include any option described in section 83(e)(3) received in connection with the performance of services. (5) Insurance contracts, annuities, and endowments For purposes of this part, the term derivative shall not include any insurance, annuity, or endowment contract issued by an insurance company to which subchapter L applies (or issued by any foreign corporation to which such subchapter would apply if such foreign corporation were a domestic corporation). (6) Derivatives with respect to stock of members of same worldwide affiliated group For purposes of this part, the term derivative shall not include any derivative (determined without regard to this paragraph) with respect to stock issued by any member of the same worldwide affiliated group (as defined in section 864(f)) in which the taxpayer is a member. (7) Commodities used in normal course of trade or business For purposes of this part, the term derivative shall not include any contract with respect to any commodity if— (A) such contract requires physical delivery with the option of cash settlement only in unusual and exceptional circumstances, and (B) such commodity is used (and is used in quantities with respect to which such derivative relates) in the normal course of the taxpayer’s trade or business (or, in the case of an individual, for personal consumption). (c) Contracts with embedded derivative components (1) In general If a contract has derivative and nonderivative components, then each derivative component shall be treated as a derivative for purposes of this part. If the derivative component cannot be separately valued, then the entire contract shall be treated as a derivative for purposes of this part. (2) Exception for certain embedded derivative