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General FpML Discussion Technical & Implementation Questions Equity Option – Price Per Option

This topic contains 2 replies, has 3 voices, and was last updated by  JeffSimons 3 months, 2 weeks ago.

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  • #19814

    siddesai
    Participant

    Hello
    Query on how the Equity Premium feature works.

    Business Scenario
    An Investment Firm buys 10 equity call options at EUR 11.46 per contract from another Investment Firm. The price multiplier (number of underlying equities represented in one contract) is 5.

    The Total Premium Amount = 10*11.46 = EUR 114.6

    How do we define the Price Per Option ?

    Is it EUR 11.46 OR EUR 2.292 ?

    11.46 = Price Per Option Contract = Total Premium / Number of Options
    2.292 = Price Per Unit Underlying = Total Premium / (Number of Options x Option Entitlement)

    https://www.fpml.org/spec/fpml-5-9-6-rec-1/html/confirmation/schemaDocumentation/schemas/fpml-eqd-5-9_xsd/complexTypes/EquityOption/equityPremium.html

    • This topic was modified 6 months, 3 weeks ago by  siddesai.
    #20818

    samuelddarden
    Participant

    I am going to bookmark this for future updates.

    #21019

    JeffSimons
    Participant

    I really enjoy this game and I think that it has been a while since I played it. You outdid yourself by including gacha games like azur lane and the scary granny: chapter two. I will try playing these games tonight as soon as I get home. Nevertheless, I can’t wait to go back into playing it once more especially that the multiplayer mode has been enabled. I hope that it’s not too late for me to go back and play this because I’m sure that my level is already way behind and that I can be easily dominated by other players.

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