83,580
edits
Amwelladmin (talk | contribs) No edit summary |
Amwelladmin (talk | contribs) |
||
Line 15: | Line 15: | ||
====Features==== | ====Features==== | ||
Equity derivatives | Equity derivatives reference the performance of the [[underlier]] over the term of the Transaction: The “{{eqderivprov|Final Price}}”) is divided by the “{{eqderivprov|Strike Price}}” (also known as “{{eqderivprov|Initial Price}}”) to yield a percentage. | ||
*'''{{eqderivprov|Strike Price}}''': | *A percentage of greater than 100% implies a positive return over the{{eqderivprov|Transaction}}. | ||
*'''{{eqderivprov|Settlement Price}}''': | *A percentage of less than 100% implies a negative return. You’re [[out-of-the-money]], soldier. | ||
===Key concepts=== | |||
*'''{{eqderivprov|Strike Price}}''': the market price of the underlier at the {{eqderivprov|Trade Date}}; | |||
*'''{{eqderivprov|Settlement Price}}''': the market price of the underlier at the {{eqderivprov|Termination Date}}; | |||
*'''[[Barrier]]s''': above or below which the trade may knock in, knock out, or the settlement formula may adjust; | *'''[[Barrier]]s''': above or below which the trade may knock in, knock out, or the settlement formula may adjust; | ||
*'''{{eqderivprov|Valuation}}''': on the Settlement Date, the | *'''{{eqderivprov|Valuation}}''': on the {{eqderivprov|Settlement Date}}, the Settlement Price will be determined by reference to one or more {{eqderivprov|Valuation Date}}s, (if more than one, {{eqderivprov|Averaging}} may apply). | ||
====Market and Hedging disruption==== | ====Market and Hedging disruption==== |