Hierarchy
EA-FINSERV (Software Component) SAP Enterprise Extension Financial Services⤷
FIN-FSCM-TRM-MR (Application Component) Market Risk Analyzer⤷
FTBB (Package) Risk Management Basis
Basic Data
| Data Element | TV_XIMPLOPT |
| Short Description | Break Down Implied Options |
Data Type
| Category of Dictionary Type | D | Domain |
| Type of Object Referenced | No Information | |
| Domain / Name of Reference Type | XFELD | |
| Data Type | CHAR | Character String |
| Length | 1 | |
| Decimal Places | 0 | |
| Output Length | 1 | |
| Value Table |
Further Characteristics
| Search Help: Name | ||
| Search Help: Parameters | ||
| Parameter ID | ||
| Default Component name | ||
| Change document | ||
| No Input History | ||
| Basic direction is set to LTR | ||
| No BIDI Filtering |
Field Label
| Length | Field Label | |
| Short | 10 | Impl. Opt. |
| Medium | 15 | Implied Options |
| Long | 20 | Implied Options |
| Heading | 18 | Implied Options |
Documentation
Definition
If an interest rate formula with a variable rate and a fixed upper and lower limit is agreed for a transaction, then the agreement contains implied options. If these implied options are to be broken down and valued, then you must set the Implied Options indicator. If you do not set the indicator, then the interest rates are calculated in a deterministic way from the yield curve.
Example
An interest rate formula was agreed for a loan, in which the 6-month euribor is taken as the reference rate, and the interest rate can be a minimum of 3 percent, and a maximum of 5 percent. The interest rate agreement can be broken down and depicted as a floater, cap, and a floor. If the Implied Options indicator is set, the option price calculator is used for these three components in the NPV calculation.
History
| Last changed by/on | SAP | 20030716 |
| SAP Release Created in |
