Template:M summ Equity Derivatives 5: Difference between revisions
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'''{{eqderivprov|Equity Amount Payer}}''': [[Equity Swap Transactions - Equity Derivatives Provision|Not]] of itself a wildly interesting definition but the question of ''when'' one is an {{eqderivprov|Equity Amount Payer}} — when you are [[long]], and not when you are [[short]] — is not entirely intuitive. The Equity Amount Payer is the equivalent of a “{{eqderivprov|Seller}}” in an {{eqderivprov|Option Transaction}}. The person paying ''away'' the equity performance. If the customer is ''[[long]]'', the [[swap dealer]]. If the customer is ''[[short]]'', the customer. | '''{{eqderivprov|Equity Amount Payer}}''': [[Equity Swap Transactions - Equity Derivatives Provision|Not]] of itself a wildly interesting definition but the question of ''when'' one is an {{eqderivprov|Equity Amount Payer}} — when you are [[long]], and not when you are [[short]] — is not entirely intuitive. The Equity Amount Payer is the equivalent of a “{{eqderivprov|Seller}}” in an {{eqderivprov|Option Transaction}}. The person paying ''away'' the equity performance. If the customer is ''[[long]]'', the [[swap dealer]]. If the customer is ''[[short]]'', the customer. | ||
'''{{eqderivprov|Equity Amount Receiver}}''': Used in the context of {{eqderivprov|Price Return}} Transactions, where the amount is payable by the {{eqderivprov|Equity Amount Payer}} of the equity or index performance is positive, but (its [[absolute value]]) payable by the {{eqderivprov|Equity Amount Receiver}} is the price return is negative. | |||
'''{{eqderivprov|Final Exchange Amount}}''': In a delta-one {{eqderivprov|Equity Swap Transaction}}, there is unlikely to be one. Maybe if the swap has a [[FX|cross-currency]] element you might exchange notional amounts, or if it is some kind of par-asset swap. | |||
'''{{eqderivprov|Rate of Return}}''': Used in calculating the {{eqderivprov|Equity Amount}}, which is the amount you pay our on a {{eqderivprov|Cash Settlement Payment Date}}. | |||
Revision as of 12:53, 11 May 2022
Equity Amount Payer: Not of itself a wildly interesting definition but the question of when one is an Equity Amount Payer — when you are long, and not when you are short — is not entirely intuitive. The Equity Amount Payer is the equivalent of a “Seller” in an Option Transaction. The person paying away the equity performance. If the customer is long, the swap dealer. If the customer is short, the customer.
Equity Amount Receiver: Used in the context of Price Return Transactions, where the amount is payable by the Equity Amount Payer of the equity or index performance is positive, but (its absolute value) payable by the Equity Amount Receiver is the price return is negative.
Final Exchange Amount: In a delta-one Equity Swap Transaction, there is unlikely to be one. Maybe if the swap has a cross-currency element you might exchange notional amounts, or if it is some kind of par-asset swap.
Rate of Return: Used in calculating the Equity Amount, which is the amount you pay our on a Cash Settlement Payment Date.