Final Price - Equity Derivatives Provision: Difference between revisions
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{{eqderivanat|5.9}} | {{eqderivanat|5.9}} | ||
Note that Final Price isn't necessary the ''final'' | 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}} | {{Equity swaps versus forwards}} | ||
{{Seealso}} | {{Seealso}} | ||
*[[Volume Weighted Average Price]] ([[VWAP]]) | *[[Volume Weighted Average Price]] ([[VWAP]]) | ||
*{{eqderivprov|Relevant Price}} | *{{eqderivprov|Relevant Price}} |