Final Price - Equity Derivatives Provision: Difference between revisions

Latest revision as of 13:00, 11 May 2022

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-{{eqderivanat|5.9}}
+#redirect[[Equity Swap Transactions - Equity Derivatives Provision]]
-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}}
-{{Seealso}}
-*[[Volume Weighted Average Price]] ([[VWAP]])
-*{{eqderivprov|Relevant Price}}