Treasury&RiskMgmt-Option
Hi,
I will explain one example contains the process sell/buy options. Please go through this and advise me on the same
EUR/USD
Spot price : 1.40
Strike Price: 1.45
a) SellCall
b) SellPut
c) BuyCall
d) BuyPut
Which options will exercise (a,b,c,d)
1. If the current price is 1.40
2. If the current price is 1.45
3. If the current price is 1.50
and what is the reason for exercising those optins???
Regards
Blessy
Hi Blessy,
A very nice question. maybe the same can be executed also in the system.
Best regards!
Sandip
Similar Messages
-
Hi,
What is the definition of "SPREAD" in terms of finance. Please explain with some examples
Regards
BlessySpread is the difference between two similar measures In the stock market, for example, the spread is the difference between the highest price bid and the lowest price asked.
With fixed-income securities, such as bonds, the spread is the difference between the yields on securities having the same investment grade but different maturity dates.
For example, if the yield on a long-term Treasury bond is 6%, and the yield on a Treasury bill is 4%, the spread is 2%.
The spread may also be the difference in yields on securities that have the same maturity date but are of different investment quality.
For example, there is a 3% spread between a high-yield bond paying 9% and a Treasury bond paying 6% that both come due on the same date.
The term also refers to the price difference between two different derivatives of the same class.
For instance, there is typically a spread between the price of the October wheat futures contract and the January wheat futures contract. Part of that spread is known as the cost of carry. However, the spread widens and narrows, caused by changes in the market -- in this case the wheat market. -
Hi,
Please explain what is Spot, Strike, Forward prices with examples???
Regards
BlessyHi,
Spot is nothing but the current price, while stike price is the price which you are going to fix in your option. Suppose you have an option between USD/EUR, then exchange rate price is spot price while the price on the exercise date for this option is the strike price. Ultimately strike price will be price at which this option will be exercised.
Future price is nothing but the price in the case of futures contract. A future contract is an obligation for both buyer and seller i.e one has to sell and the other has to buy. While in the case of option, either the buyer or the seller wil have the option to buy or sell.
Regards,
Ravi -
Treasury&RiskMgmt-Correspondence-Reconciliation flag
Hi,
ERP2005Ehp4 Release
SAP-FSCM -Product
In the customizing settings for the correspondence user can check the flag "Reconciliation"
What does it mean???
The customizing path is: SPRO --> Financial Supply Chain Management --> Treasury & Risk Management > Transaction Manager> General Settings --> Correspondence --> General Settings --> Assign Attributs for Business Partner Groups
Regards
BlessyHi,
I am sending only answers.If wrong pls correct me.
1.A,C
2.C
3.A,B,D,E
4.ACE
5.ABCD
6.B
7.BE
8.ALL
9.ABC
10.ABCDE
11.A
12.ABCD
13.E
14.BC
15.ALL
16.ABC
17.ACD
18.AC
19.B
20.ACDE
21.DE
22.B
23.ABCD
24.CD
25.C
26.BDE
27.BCE
28.C
29.CDE
30.BCDE
31.BDE
32.A
33.B
34.ALL
35.ABC
36.ALL
37.ABC
38.A
39.ACDE
40.AB
41.ABE
42.CD
43.ABCE
44.CD
45.ACDE
46.BD
47.AC
48.CD
I have sent answers for the questions.If any answer is wrong pls correct me.
Assign points if useful
Regards,
S.VINAYA KUMAR -
Treasury&RiskMgmt - Exposure Management
Hi,
The context is "Report Logistics in logical database for exposures"
Here, What is meant by "Logistics" ???
Thanks & Regards
BlessyHi Blessy,
Can you explain a bit more, maybe with some transaction codes etc? Informative questions are more prone to get better responses
best regards!
Sandip -
Hi,
Please explain to me the below terms with examples
1) Price valuation procedure
2) Impairment procedure
RegardsHi,
FWBS - Manual Posting is valid only for securities. I am just giving an example.
In securities there might be some charges for holding an account which is not periodical. Also there will be brokerage/ commisision involved for transactions which can be posted using manual posting.
Regards,
Ravi -
What is FRA?? Please reply me a detailed way with examples in a business point of view??
Hi Blessy,
FRA is forward rate agreement. it is for aperiod. Example is 6/9 FRA means that the period start is six months and end is 9 months. During this period you will enter an interest rate swap. Again this swap will have a floating leg and a fixed leg. Those details will be entered in the system.
Hope this helps
best regards!
Sandip -
What is meant by Fair Value Hedge and Cash flow hedge??
Hi
First you need to know what an hedge is
Hedging - In finance, a hedge is a position established in one market in an attempt to offset exposure to the price risk of an equal but opposite obligation or position in another market u2014 usually, but not always, in the context of one's commercial activity. Hedging is a strategy designed to minimize exposure to such business risks as a sharp contraction in demand for one's inventory, while still allowing the business to profit from producing and maintaining that inventory.
Fair Value Hedge
Fair value hedges primarily relate to fixed-interest balance sheet items (eg receivables, equities or securities), which are hedged against market ...
Cash flow hedge
A cash flow hedge is a hedge of the exposure to the variability of cash flow that
- is attributable to a particular risk associated with a recognized asset or liability. Such as all or some future interest payments on variable rate debt or a highly probable forecast transaction and
- could affect profit or loss
Cash flow hedges are primarily taken to mean hedges against the risk associated with future interest payments from a variable-interest balance sheet transaction by means of a swap. They are measured at their fair values.
check the below link for more details
http://www.attuariale.com/ias39.php?language=English
hope this helps
regards,
radhika -
Treasury&RiskMgmt-Transaction Manager- Money market
Hello Colleague,
In the creation of Money market - Fixed Term Deposit - investment , one select box for Capitalize interest is present
What does this capitalize interest means?? why it is in the Money market?Hi,
It depends on country you are using.
if you check capitalize interest, interest would be added to your deposit account i.e. asset account. Then it means that interest amount has also been added to the asset and hence we will not pay tax on interest amount. This is generally done, when you invest back the money which you got from deposit including interest. Then since you are investing, you won't pay tax for it i.e you are using the money.
If you have not checked the capitalize interest, then you will get the interest amount to your bank or cash and hence it is a revenue, thus you will have to pay tax for interest amount alone depeding on the amount and also the country.
P.S: If the question is answered kindly close the question.
Regards,
Ravi
Edited by: Ravishankar Ramamurthy on Jul 8, 2009 5:57 PM -
Treasury: Multiple Exercise/Partial Exercise for 1 Option Contract
Dear fellow SAPers,
I have created a product type of an OTC Option with specification:
Product Category : OTC option
Settlement : Cash Settlement
Exercise Type : American
Option Category : Standard
assigned to it is transaction type with specification
Transaction Category : Purchase
and Processing Category: Order-Contr.-Settlmnt-Exer./Expir.-Settlmnt-Termintn-TSettl
there is requirement to have multiple Exercise/ partial Exercise for one option contract, kindly help.
Thank you
Best Regards,
StevecornerDear Stefanus,
Any luck on this, as we also have a similar requirement of partial exercise of options. Any help in this regard would be highly appreciated.
Thanks n Regards,
Akhil -
Over-ride concurrent prog noprint option with printer used in CheckPrinting
I would need to give a little bit of back ground on the Check printing process that we follow to explain my issue.
Check printing is done by 2 departments - AP and Treasury. AP selects invoices and runs the payments process while Treasury prints the check and confirms the payment.
Now the issue is when AP submits the payment process, the 'Format Payment Instructions' request gets submitted. Now the users in our AP department have their printer profile set to a default printer and copies set to 1. So for every concurrent request that they submit, the output is printed to this default printer. This has been working fine so far and also works for other requests submitted by the PPR. But the 'Format Payment Instructions' request has the check file in the output which gets printed in the printer from their profile option.
If the printer option is unchecked or default printer is set to noprint in the concurrent program definition of 'Format Payment Instructions' program, the check does not print at all. Even when the treasury submits the check for printing by selecting the printer. It does not work.
Is there anyway we could get the printing of checks by Treasury over ride the concurrent program definition or supress printing of checks by the 'Format Payment Instructions' program while being submitted by AP responsibility.
Any ideas/help on this would be great as we are going live with the upgrade now and would really need to address this issue.
Thanks!
RamyaHi TJ,
you are having definetely other issues, than the ones that might be caused by clrpfm of the tables above ...
But, based on that data, I do not know which ones ;-(
There are dynpro tables like dynpload or d3456t or so not proper ...
Regards
Volker Gueldenpfennig, consolut international ag
http://www.consolut.net - http://www.4soi.de - http://www.easymarketplace.de -
BAPI's for Transaction Manager: Is there any BAPI for Stock Options
Hi gurus,
We are using almost every BAPI for Transaction Manager module at FSCM-Treasury & Risk Management (ECC 6.0).
We have forex swaps, forex forwards, forex spot deals, interest rate swaps, cross currency swaps, equity swaps, and we also have a stock options plan.
We need to use a BAPI to automatically create stock options, importing data from other stock options alreaedy created (manually, by the user) in the system.
Do you know if there is any specific functionality for this?
Thanks in advance and kind regards.
BorjaHi Borja,
if I understand you correct then you want to create a stock option like you can do it manually with the transaction FWZZ. Try the BAPI BAPI_FP_CREATEFROMDATA. With this function module it is possible to create different types of securities like listed options or futures too.
Regards
Robert -
Product Category 56 u2013 Facilities; Product Category 57 u2013 Treasury missing
Hi
When we try to configure treasury management in our ECC 6.0 EHP4 upgrade box, we found that there are many datas missing in SPRO in our customizing client 100. Whereas these are available in client 000.
Like
SPRO > Financial supply chain management > Treasury and Risk Management > Transaction Manager > General settings
Transaction Management
Define field selection - data missing when compared with 000 client
Define number ranges - data missing when compared with 000 client.
We are not sure whether we need to activate any specific settings to get these missing values, otherwise our finance team has to fully reenter/recreate these missing entries in our customizing client.
We have already activate EA-FS - Financial services in SFW5, but still the data is missing
Would appreciate your help
Regards
SenthilThe adjustment function is available in many configuration transactions within the IMG, not just those within FSCM.
Go to the configuration transaction you want to adjust. Make sure that you are in change mode. Within the transaction select the Utilities menu. If the Adjustment function is available for the configuration, the Utilities menu will contain an Adjust option. Select this option to run the Adjustment. As a part of the process, you will need to log into the client/system, that you want to adjust from.
Regards,
Shannon -
Treasury Management Curriculum Location
On March 29 I sent one of my customers the following information which I cut and pasted from the UA web site. Now I can't find it.
+In the TMP module the students use an ERP system (in this case SAP) to work in the field of Treasury Management. In this module the ERP system used, SAP, is not a goal in itself, but provides a means of experiencing the many aspects of treasury management. The emphasis lies on anything to do with the management of money flows. Tendering, winning orders, purchasing, invoicing, payments and receipts, and reacting to liquidity shortages / surpluses u2013all in different currencies u2013 generate the problems that every treasurer has to deal with.++ In this module, students are appointed as assistant-treasurer in a u201Cgoing concernu201D, DDS Management Consultancy, which uses SAP as administration and information system. The system is already loaded with data such as client and supplier data, accounts receivable and debts, and ledger and bank accounts.
DDS carries out consultancy and training assignments for its clients, and if necessary hires external consultants. DDS acquires its assignments in u201CEurolandu201D and beyond and consultants are employed in various countries.
A great variety of problems are raised with a limited number of assignments. Students must prepare and maintain a rolling liquidity plan, hedge foreign exchange positions, borrow or invest short term, prepare a long-term loan and manage receivables and payables. For this, use is made of what the market has to offer in terms of financial instruments and derivatives: deposits, loans, FRAs, futures, options, swaps, spot and forward transactions, etc.
Use is made of real market rates and prices that can be found in newspapers, on the internet, or possibly by telephoning a bank.
The management of money flows is a hot item for many companies. Good treasury management saves money. Great savings in management and bank costs can be achieved by centralising money flows - millions of euros a year for large multinationals.
Working for some months with DDS as an assistant-treasurer provides a student with some experience in this field at zero cost now, but with a high return in the future.
It is under the Treasury Managemenrt Project (hence the TMP).
Edited by: Atis Purins on Apr 5, 2010 2:20 AMOn March 29 I sent one of my customers the following information which I cut and pasted from the UA web site. Now I can't find it.
+In the TMP module the students use an ERP system (in this case SAP) to work in the field of Treasury Management. In this module the ERP system used, SAP, is not a goal in itself, but provides a means of experiencing the many aspects of treasury management. The emphasis lies on anything to do with the management of money flows. Tendering, winning orders, purchasing, invoicing, payments and receipts, and reacting to liquidity shortages / surpluses u2013all in different currencies u2013 generate the problems that every treasurer has to deal with.++ In this module, students are appointed as assistant-treasurer in a u201Cgoing concernu201D, DDS Management Consultancy, which uses SAP as administration and information system. The system is already loaded with data such as client and supplier data, accounts receivable and debts, and ledger and bank accounts.
DDS carries out consultancy and training assignments for its clients, and if necessary hires external consultants. DDS acquires its assignments in u201CEurolandu201D and beyond and consultants are employed in various countries.
A great variety of problems are raised with a limited number of assignments. Students must prepare and maintain a rolling liquidity plan, hedge foreign exchange positions, borrow or invest short term, prepare a long-term loan and manage receivables and payables. For this, use is made of what the market has to offer in terms of financial instruments and derivatives: deposits, loans, FRAs, futures, options, swaps, spot and forward transactions, etc.
Use is made of real market rates and prices that can be found in newspapers, on the internet, or possibly by telephoning a bank.
The management of money flows is a hot item for many companies. Good treasury management saves money. Great savings in management and bank costs can be achieved by centralising money flows - millions of euros a year for large multinationals.
Working for some months with DDS as an assistant-treasurer provides a student with some experience in this field at zero cost now, but with a high return in the future.
It is under the Treasury Managemenrt Project (hence the TMP).
Edited by: Atis Purins on Apr 5, 2010 2:20 AM -
Tracking Treasury Stock in SAP?
Hello!
I am wondering if SAP has any capabilities to track Treasury stock purchases and issuances for stock options and employee stock purchase plan.
Any thoughts on this would be greatly appreciated!
Thank you,
Dianedwrobertson,
There are at least two issues you should know about
integration with SAP:
- Captivate requires a change to a variable in the HTM file
after you
publish (though you could make the same change to the
SCORM.htm template
file so you make the change once and everytime you publish it
uses the
updated template).
-SAP doesn't use the score from Captivate. Scoring in SAP is
based on the
completion of all of the SCO's in a course. Since Captivate
creates a
course with a single SCO, when a learner completes your SCO
(your Captivate
file) they probably see a score of 100.
The change to the HTM file needs to be to the variable
"g_intAPIOrder".
Change it from a 0 to a 1.
More specific information can be found here (though there
isn't any
reference to SAP):
http://www.adobe.com/devnet/captivate/articles/output_scorm_04.html#scorm_api
Let me know if this works/helps.
Regards,
Andrew
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