ALM When Strike Type is 'PRICE' What Fields/Values are Used to Determine if Embedded Option is Exercised? (Doc ID 2137960.1)

Last updated on MARCH 03, 2017

Applies to:

Oracle Financial Services Asset Liability Management - Version 8.0.2 and later
Information in this document applies to any platform.
Oracle Financial Services Asset Liability Management (ALM)

Goal

How does ALM know to exercise for cash flows if STRIKE TYPE is PRICE (vs RATE)?  There appears to be no field related to embedded option set up that indicates how/what price to exercise.  For rate - there is a rate lookup field and rate interest rate code (IRC) field that directs the cash flow engine (CFE) to look at a specific IRC for a specific term.  For strike type PRICE - what fields/values are used to determine if embedded option is exercised?

Solution

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