From The Jolly Contrarian
Jump to navigation
Jump to search
|
|
| (8 intermediate revisions by the same user not shown) |
| Line 1: |
Line 1: |
| {{eqderivanat|5.9}}
| | #redirect[[Equity Swap Transactions - Equity Derivatives Provision]] |
| Note that {{eqderivprov|Final Price}} isn't necessary the ''final'' {{eqderivprov|Final Price}}: you determine a fresh {{eqderivprov|Final Price}} on every {{eqderivprov|Valuation Date}}, as of the {{eqderivprov|Valuation Time}}, and they feed into the {{eqderivprov|Cash Settlement}} (or {{eqderivprov|Equity Notional Reset}}) process, whereby one party pays out the movement price of the underlier over the period since the last {{eqderivprov|Valuation Date}}.
| |
| | |
| Thus, today’s {{eqderivprov|Final Price}} becomes the {{eqderivprov|Initial Price}} for the purposes of the next {{eqderivprov|Valuation Date}}, and so on and so on — yesterday’s rooster is today’s feather duster.
| |
| | |
| Only on the ''final'' {{eqderivprov|Final Price}} does the {{eqderivprov|Transaction}} terminate.
| |
| | |
| {{Equity swaps versus forwards}}
| |
| {{Seealso}}
| |
| *[[Volume Weighted Average Price]] ([[VWAP]])
| |
| *{{eqderivprov|Relevant Price}}
| |
Latest revision as of 13:00, 11 May 2022