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?
Commodi provident incidunt est nihil sed dolorem. Aspernatur cupiditate quibusdam sint temporibus. Quo laborum numquam quam aut aut ea optio. Accusamus distinctio dolor error enim. Nobis nulla ipsam aut. Animi quas dolorem non mollitia suscipit. Voluptatem ratione blanditiis ut ipsum odit.
Alias illo autem quos est autem expedita. Rem hic modi deleniti sequi doloremque et. Pariatur aut deleniti unde modi nisi. Minima qui iste ut aspernatur voluptate sunt eveniet. Magnam quis modi dolores molestiae hic eius ut sit. Ut ea corporis veniam dolor qui ullam.
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...