4.3 Maintain Manual Knock-In Knock-Out

This topic describes the systematic instruction to process the Manual Knock-In Knock-Out screen.

Specify User ID and Password, and login to Homepage.

You can create OT Options products in the OT Product Definition screen, invoked from the Application Browser. In this screen, you can enter basic information relating to a product such as the Product Code, the Description, and so on.

1. On Home page, type OTDXKIKO in the text box, and then click next arrow.

   The Knock In Knock Out screen is displayed.

   Figure 4-22 Knock In Knock Out

   
   Description of "Figure 4-22 Knock In Knock Out"

   The following values get displayed here:

   • Contract reference number
   • Customer number (CIF)
   • Barrier Type – which can be either single KI, Single KO, Double KI or a Double KO
   • Rebate Amount – If a rebate was allowed for the options contract
   • Rebate Currency – If a rebate was allowed for the options contract, the applicable rebate currency
   • Barrier – The barrier price. This is the predetermined exchange rate at which the contract is knocked in or knocked out.
   • Lower Barrier – The lower barrier in case of a double KI or a double KO.
   • Barrier Window Start Date – The knock in knock out processing start date
   • Barrier Window End Date – The knock in knock out processing end date
   • Strike Price – The strike price at which the options contract was booked

   The Spot Rate is captured and based on the barrier option it is validated whether Knock In or Knock Out can happen at the given spot rate.