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Equity Notional Reset - Equity Derivatives Provision: Difference between revisions
Equity Notional Reset - Equity Derivatives Provision (view source)
Revision as of 15:08, 7 April 2014
, 7 April 2014→Example
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The swap will reset automatically on each [[Cash Settlement Payment Date - Equity Derivatives Provision|Cash Settlement Payment Date]], (i.e., usually a {{eqderivprov|Settlement Cycle}} after each {{eqderivprov|Valuation Date}}). | The swap will reset automatically on each [[Cash Settlement Payment Date - Equity Derivatives Provision|Cash Settlement Payment Date]], (i.e., usually a {{eqderivprov|Settlement Cycle}} after each {{eqderivprov|Valuation Date}}). | ||
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====Example==== | ====Example==== | ||
'''Let's say''': | '''Let's say''': | ||
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'''Result''': instead of the swap being out of the money by £1mm and collaterased by that amount, the restruck swap has a MTM of 0 and neither party holds any collateral. | '''Result''': instead of the swap being out of the money by £1mm and collaterased by that amount, the restruck swap has a MTM of 0 and neither party holds any collateral. | ||
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===User Guide=== | ===User Guide=== | ||