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Template:How Equity Notional Reset works: Difference between revisions
Template:How Equity Notional Reset works (view source)
Revision as of 18:06, 14 December 2015
, 14 December 2015no edit summary
Amwelladmin (talk | contribs) (Created page with "a beginner's guide to the complex and tortuous world of what happens when your Equity Notional Amount is subject to Equity Notional Reset. The short version's really quite ea...") |
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*If {{eqderivprov|Equity Notional Reset}} ({{eqderivprov|5.10}}) applies, then on each Cash Settlement Payment Date you have to adjust the Equity Notional Amount by the Equity Amount. | *If {{eqderivprov|Equity Notional Reset}} ({{eqderivprov|5.10}}) applies, then on each Cash Settlement Payment Date you have to adjust the Equity Notional Amount by the Equity Amount. | ||
*The {{eqderivprov|Equity Amount}} ({{eqderivprov|8.7}}) equals the {{eqderivprov|Equity Notional Amount}} times the {{eqderivprov|Rate of Return}}. | *The {{eqderivprov|Equity Amount}} ({{eqderivprov|8.7}}) equals the {{eqderivprov|Equity Notional Amount}} times the {{eqderivprov|Rate of Return}}. | ||
*The {{eqderivprov|Rate of Return}} is (({{eqderivprov|Final Price}} - {{eqderivprov|Initial Price}})/{{eqderivprov|Initial Price}}) * any{{eqderivprov|Multiplier}} | *The {{eqderivprov|Rate of Return}} ({{eqderivprov|5.7}}) is (({{eqderivprov|Final Price}} - {{eqderivprov|Initial Price}})/{{eqderivprov|Initial Price}}) * any{{eqderivprov|Multiplier}} | ||
*The Final Price is the market value of the Share on the Valuation Date | |||
*Initial Price is the price specified in the confirm (as adjusted by this glorious mechanic). | |||