Treasury&RiskMgmt-Stocks

Hi,
Please explain what is Spot, Strike, Forward prices with examples???
Regards
Blessy

Hi,
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

Similar Messages

Treasury&RiskMgmt

Hi,
What is the definition of "SPREAD" in terms of finance. Please explain with some examples
Regards
Blessy

Spread 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.

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
Blessy

Hi,
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
Blessy

Hi 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

Treasury&RiskMgmt-Securities

Hi,
Please explain to me the below terms with examples
1) Price valuation procedure
2) Impairment procedure
Regards

Hi,
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

Treasury&RiskMgmt-FRA

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

Treasury&RiskMgmt-Hedging

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-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

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

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,
Diane

dwrobertson,
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

Treasury in ECC6.0

Dear Experts,
In ECC6.0, we need to maintain Update Type, on top of Flow type for treasury posting. I would like to do stock transfer using corporate action - FWK0, however upon posting - FWKB, the system prompts to config the Derived Business Transaction Update type. Can you please help/guide me how to config DBT for transfer stock posting?
Thank you in advance for the assistance.
Regards.

Hi,
you need to define the update types in the customizing. This must be done in the setting for securities/position management/corporate actions/update types. If you click on the info button for the customizing step 'Assign Update Types to the Corporate Action Categories' then you will also find some help on the sample customizing
I hope this helps.
Regards
Robert

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.
Borja

Hi 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

Buy stocks on OTC Market

Hi people,
we are implementing Transaction Management in Treasury. My client's requirement on following:
They have agreement when they buy stocks on OTC market.
Step 1: I make collateral to vendor
Dr: Collateral
Cr: Cash or Bank clearing account
Step 2: I down payment to vendor
Dr: Down payment
Cr: Cash or Bank clearing account
Step 3: I receive stocks and payment to vendor
Dr: Stocks
Cr: Down payment
Cr: Cash or Bank clearing account
Please help me this case.
Thank you
Ms. Minh

Hi,
Use securities module (within treasury management); product type 01A; transaction type 100. You can add flow types for collateral, down payment and assign those to transaction type. Accounting entries can be controlled by account determination settings.
Use business partner (tcode: BP; role: counterparty) instead of vendor.
Use condition type (111 by default) for dividend. Would you have multiple purchases of the same stock? Then, you will need to be aware of the position (external position) concept; so you can post dividend for your position as opposed to for separate purchases.
Create asset securities account TRS_SEC_ACC.
Once config is done, FWZZ to create class (stock master data, if you will); FTR_CREATE or TS01 to create securities transaction; settle; post using TBB1 for collateral, down payment etc., FWZE or FWSO to post dividend.
Manish

Issue: Stocks

Hi experts,
I configure in Securities.
Requirement is to issue my company's stocks
Please help me in IMG and Application
Thank you so much
Best regards,
Ms. Minh

Hi,
When your company is issuing stock you don't need to record anything from treasury side. It is only accounting and nothing is done from Treasury side. If your company's treasury is buying your company's stock then it is treated as a same way as any other stock purchase.
Regards,
Ravi
Hi,
My company issues stocks which is recorded from Accounting side. My company's treasury buys the stocks, which is recorded from Treasury side.
Now I want to know How many my company's stocks on Market and to calculate EPS, DPS of my company's stocks. Please help me give solution?
Thanks
Ms. Minh

Can our hp laserjet enterprise 500 color printer m551use 67lb card stock?

The printer specifications list card stock but no weights.
This question was solved.
View Solution.

Hello,
the required media weight is not supported by the printer.
As you may find listed within the Media Weight specification below, the printer support up to 58 lb media.
Media weight:
Tray 1: 16 to 58 lb (plain); 28 to 58 lb (glossy);
Tray 2: 16 to 43 lb (plain paper); 28 to 58 lb (glossy paper)
You may find the product specification below:
http://h10010.www1.hp.com/wwpc/us/en/sm/WF06b/18972-18972-3328060-15077-236268-4184772-4184773-41847...
Regards,
Shlomi
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Treasury&RiskMgmt-Stocks

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