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Listed Options - Product categary 750

Hi expert,

I am try to map the Listed Options (product categary - 750) in my configuration. I have done the almost all configuration related to Listed option. but not able to get the standard process. Please help I have following question.

1. I have a flow type 1302 for option premium and it is mapped with my update type 1302. Should i post the option premium through other flow in transaction entry (TI5AN or FTR_CREATE) or is there any functionality to do the same ???

2. I am able to post my purchase transaction, i am not having any problem on configuration side but what is standard process for this option purchase position. For exampIe i have taken a call option for index (index name is - Nifty) Strike Price = 6200

Current market position of Index ( niftry) =5900. I have paid premium for rs 50.

Now at that time what should be my position or what should i entered when i create a purchase transaction using FTR_CREATE and TI5AN.

a. should i passed no. of unit 1 and amount 5900

b. no. of unit 1 and amount 6200 (strike price)

c. or should i pass my premium amount in this place ( does not pass premium through other flow) i.e 50.

please help how whould i reflect my position, i m confused with this things .

3. If you see the config. Define transaction type for listed derivatives here we found the 0001 and 0002 ( contract and settlement) processing category for product category 750. But my option also having the exercise and expire how we can map this expiration and exercise with this product categary 750. It is a standard practice for option.

Please help.. I will thankful to you ... please give your input according to your experiance...

Regards

Gaurav Gupta

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  • Posted on Apr 18, 2011 at 08:39 AM

    Hi,

    ...basically you have to distinguish between Listed Options NORMAL-Style and FUTURE-Style and finally to choose, which type fulfills your requirements.

    The setup is not too complicated - if you know what to do 😉

    1) Normal-Style Options have - contrary to Future-Style Options - no Margining (VM, IM).

    2) Future-Style Options are similar to Futures and have NO delivery (neither physical, nor cash-settlement)

    Premiums (Normal-Style Options) are not handled via Other Flows, but via using DE16xx (copy from DE15xx) flows which are posting-relevant.

    Hope, this helps!

    Regards,

    Lorenz

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