PVF Prepaid Variable Forward
Hi, has anyone here tried to construct or deal with a prepaid variable forward? I understand the brief idea but puzzled when it comes to cash settlement. Say if the price at maturity is below the lower strike, do you cash settle the difference between maturity price and strike price? And how do I calculate the floor for the seller?
Deserunt porro sint iure amet. Deserunt ea dignissimos excepturi earum.
Reiciendis et dicta nemo et eaque vero est. Nesciunt aut facere nesciunt eaque sit. Et quasi recusandae illo dolorem quia iure eaque omnis.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...