32.2 Transfer Price using Forward Rates and Calculate Rate Lock Option Costs

The Standard FTP Process provides setup options that allow you to Transfer Price Data in the Loan Commitments table using Forward Rates and calculate the Related Rate Lock option costs. To do this, please select the Loan Commitment table under Source Selection.

The following options are available on the Calculation Selection page.

Figure 32-1 Source Selection

Note:

These calculation options assume the user has also selected the Loan Commitments table on the Product Selection page under Source Selection:

• Forward Transfer Rate: The Forward Transfer Rate option is required when the user wants to use an Implied Forward Curve as the reference curve for Transfer Pricing a future dated instrument records.
• Rate Lock Option Cost: The Rate Lock Option Cost selection option along with drop-down lists for selecting the Risk-free Curve and Discount Curve are required for calculating the related Rate Lock Option Costs.
• Migration of Rate Lock Option Costs to Ledger Stat: If the Rate Lock Option Cost to Ledger Stat migration is needed, users should additionally select this option.

Figure 32-2 TP Standard Process Rule