Price parameters comprise all information needed for the fair valuation of financial instruments. This can involve both information available on the market, such as money market interest rates and capital market interest rates, as well as internal calculation bases. The price parameters are used particularly in the Treasury component and in the industry solution SAP Banking.

You can enter the following information as price parameters in the SAP system:

• Reference interest rates
• Forex rates
• Security prices
• Index statuses
• Interest volatilities
• Forex rate volatilities
• Security price volatilities
• Index volatilities
• Correlations
• ß factors

You have the following alternatives to choose from when entering price parameters: