19.4 Deterministic Approach for Rate-Based Strike

The Rate-Based approach is comparing the Strike Rate against the Strike IRC from the FSI_D_EMBEDDED_OPTIONS table. And, the term selection is a user input – Payment Frequency, Reprice Frequency, Remaining Term of the Instrument, and Original Term of the Instrument.

Depending on the Rate lookup selection by the user, the term is chosen and compared against the Strike Rate.