GUARANTEED EQUITY PROFITS INSTRUMENT VALUATION PROCEDURE



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  1. Log into your account or if you are a new user, register your account and enable two factor authentication.
  2. Click on the [Guaranteed equity profits] button, this will take you to the Guaranteed equity profits instrument valuation parameters page.

Guaranteed equity profits instrument valuation parameters page

  1. Enter the name of underlying equity index.
  2. Select the name of currency of valuation from the drop-down list.
  3. Enter the value of current investment.
  4. Enter the maturity period of the instrument.
  5. Enter the annualised implied index volatility.
  6. Enter the continuously compounded index dividend yield.
  7. Enter the continuously compounded zero rate for maturity period.
  8. Enter the minimum return offered by the product. For example if it is 20% enter 0.2, or if it is -10% so that at least 90% of the initial investment is guranteed enter 0.1.
  9. Enter the maximum return offered by the product. For example if it is 80% enter 0.8.
  10. Enter the ratio of terminal value and initial value paid within lower and upper return thresholds. For example, if the terminal index value is I(T) and the initial index value is I(0) and 95% of return per unit is paid if the return is between the minimum and maximum threshold, that is 0.95*I(T)/I(0), enter 0.95.
  11. Enter allocated expenses and taxes.
  12. Click the submit button and this will take you to the output display page.

Output display page

  1. You can view pricing model output together with input parameters you entered.
  2. At the bottom of the page you can click on the button to create database record for the current model output. This will take you to the create database record page where you should click on the create button to create the database record.
  3. After clicking on the create button to create the database record, you will be taken to the database records view page, where you can scroll vertically or horizontally to view database records including the one you just created.
  4. You can filter database records according to the currency of valuation using the filter box. You can click on the details link on the extreme right of a particular database record, this will take you to the particular database record details page.