Defines a scheme of values for specifying the type of corporate action.
2013-03-22
pricingModelScheme
1-0
http://www.fpml.org/coding-scheme/pricing-model
http://www.fpml.org/coding-scheme/pricing-model-1-0
http://www.fpml.org/coding-scheme/pricing-model-1-0.xml
Code
63
Source
Description
key
BackwardInduction
FpML
Indicates a Backward Induction method used to evaluate the price of an asset. Backward induction is the process of reasoning backwards in time, from the end of a problem or situation, to determine a sequence of optimal actions.

ClosedForm
FpML
Indicates a Closed Form model is used to evaluate the price of an asset. In mathematics, an expression is said to be a closed-form expression if it can be expressed analytically in terms of a finite number of certain "well-known" functions.

Intrinsic
FpML
Indicates the market value as obtained by forecasting cash flows and discounting them to the present using a risk free rate of interest, without requiring probabilistic assumptions or models.

MonteCarlo
FpML
Indicates a Monte Carlo method used to evaluate the price of an asset. The Method encompasses any technique of statistical sampling employed to approximate solutions to quantitative problems.