Basket - Equity Derivatives Provision: Difference between revisions
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{{eqderivanat|1.15}} | {{eqderivanat|1.15}} | ||
Sort of like a mini-index, only static (but modifiable by agreement). In the context of [[delta-one]] [[equity derivatives]], there’s little difference between a {{eqderivprov|Basket}} and a collection of single {{eqderivprov|Share Swap Transaction}}s on the individual {{eqderivprov|Issuer}}s comprising the basket. You might ask why bother even having them, but if you wanted to trade a fixed block, and keep a single UTI, it might make sense — for trading a modified version of a public index, for example. | Sort of like a mini-index, only static (but modifiable by agreement). In the context of [[delta-one]] [[equity derivatives]], there’s little difference between a {{eqderivprov|Basket}} and a collection of single {{eqderivprov|Share Swap Transaction}}s on the individual {{eqderivprov|Issuer}}s comprising the basket. You might ask why bother even having them, but if you wanted to trade a fixed block, and keep a single [[UTI]], it might make sense — for trading a modified version of a public index, for example. | ||
Revision as of 16:57, 13 November 2018
Template:Eqderivanat Sort of like a mini-index, only static (but modifiable by agreement). In the context of delta-one equity derivatives, there’s little difference between a Basket and a collection of single Share Swap Transactions on the individual Issuers comprising the basket. You might ask why bother even having them, but if you wanted to trade a fixed block, and keep a single UTI, it might make sense — for trading a modified version of a public index, for example.