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If you have an {{eqderivprov|Equity Swap}} referencing a [[future]], some debate — not all of it necessarily fruitful, but undoubtedly special in the hearts of those who enjoy [[metaphysics|metaphysical]] conundrums — can be had as to whether one should select {{eqderivprov|Price Return}} or {{eqderivprov|Total Return}} as your {{eqderivprov|Type of Return}}, but since [[futures]] don’t generally pay dividends, on point of practical fact there is not a lot of difference, so such debate can aggravate intensely practical people such as my little sister, who despair of metaphysical conundrums. | If you have an {{eqderivprov|Equity Swap Transaction}} referencing a [[future]], some debate — not all of it necessarily fruitful, but undoubtedly special in the hearts of those who enjoy [[metaphysics|metaphysical]] conundrums — can be had as to whether one should select {{eqderivprov|Price Return}} or {{eqderivprov|Total Return}} as your {{eqderivprov|Type of Return}}, but since [[futures]] don’t generally pay dividends, on point of practical fact there is not a lot of difference, so such debate can aggravate intensely practical people such as my little sister, who despair of metaphysical conundrums. | ||
But okay, dammit, let’s hop off the fence and stick [[Occam’s razor]] into the ointment: Since {{eqderivprov|Total Return}} is {{eqderivprov|Price Return}} with some extra fiddly bits relating to dividends — including the need to choose whether or not you want your dividends [[deemed]] to be reinvested — then all other things being equal — such as when, as for futures, there ''are'' no dividends for you to elect whether or not to reinvest — {{eqderivprov|Price Return}} is the simpler, and therefore preferred, definition. ''There'': for {{eqderivprov|Equity | But okay, dammit, let’s hop off the fence and stick [[Occam’s razor]] into the ointment: Since {{eqderivprov|Total Return}} is {{eqderivprov|Price Return}} with some extra fiddly bits relating to dividends — including the need to choose whether or not you want your dividends [[deemed]] to be reinvested — then all other things being equal — such as when, as for futures, there ''are'' no dividends for you to elect whether or not to reinvest — {{eqderivprov|Price Return}} is the simpler, and therefore preferred, definition. ''There'': for {{eqderivprov|Equity Swaps}} on [[futures]], go for {{eqderivprov|Price Return}}. |