Tunnel Option - Rate Schedule and Rate Components
Create a rate schedule for your rate.
For the rate components, let's assume the charges are as follows:
• A bill line with the charges for the "within the tunnel" data at the strike price
• A bill line with the charges for the "outside the tunnel" data at the market price
Note that this rate may contain other charges that are not illustrated here.
The above line items require algorithms to perform the interval pricing calculations. The product is shipped with the RCIPRS algorithm type, which applies an interval pricing curve to an interval profile curve, assuming that the interval size is the same.
Seq #
RC Type
Description
Profile Relationship Type
Algorithm
Bill Factor
10
Interval Pricing
Within Tunnel data at strike price
INTUNNEL
Algorithm to apply prices to an interval profile curve
Strike Price
20
Interval Pricing
Outside Tunnel data at market price
OUTTUNNEL
Algorithm that applies prices to an interval profile curve (data does not need to be continuous)
Market Price