1. User Guide
  2. Business Rules Administration
  3. Application Specific Rules
  4. Transfer Pricing Standard Processes
  5. Standard Process with Customized Calculations Selection
  6. Calculating Rate Lock Option Cost

5.3.9.7.2 Calculating Rate Lock Option Cost

As shown in the TP Process, the Rate Lock Option Cost calculation requires two inputs both of which come from the Rate Management > Interest Rates page.

To calculate the Rate Lock Option Cost, select Rate Lock Option Cost from the LHS menu, and then select the Select if Rate lock option cost calculations to be performed? toogle switch.

Figure 5-116 Rate Lock Option Cost Calculation


Rate Lock Option Cost Calculation

Select the relevant options for the following:

  • Discount Curve: This can be a standard Interest Rate Curve.
  • Volatility Curve: This is a special form of Interest Rate Curve, where the volatility curve option has been selected.