Conditions Detail: Option Premium

Use

When creating a financial transaction with a premium, a unique option premium is proposed as a default which you enter in the basic screen for transaction entry.

In the details screen, you can generate several premium payments by specifying a frequency.

Procedure

  1. You get to the Conditions details screen: Option Premium from the basic data of transaction entry via double-click in the option premium area or via Goto ® Detail screen: Premium.
  2. The details screen comprises the following areas:
    1. Premium amount

      2. You enter the amount and the premium currency here.

      You must also define the interest calculation method here. This is used to calculate the number of days to carry out the accrual/deferral with frequent payment of the premium.

    2. Update rule

      3. You can choose between frequent update and single dates.

      In the former case, enter either the monthly or daily frequency.

      In the latter case, the premium is only paid on the specified due date and then in yearly frequency.

    3. Due date

In this area, you can set the month-end indicator.

You also define a postponement rule and the base calendar here according to which the due date should be put back if it does not fall on a working day.