Premium Percentage Of Notional Expression
Definition
Premium Percentage Of Notional Expression. The expression of the premium as a percentage of the notional value of the transaction.
A percentage of 5% would be expressed as 5%. Note that FpML recasts the percentage as a fractional amount. FpML: 'The amount of premium to be paid expressed as a percentage of the notional value of the transaction. A percentage of 5% would be expressed as 0.05.' note that in OTC markets the options are traded on volatility which ultimately calculkates to a premium. This allows for prices to be made generically.
Disclaimer
This entry annotates a FIBO Ontology Class. FIBO is a trademark and the FIBO Ontology is copyright of the EDM Council, released under the MIT Open Source License. There is no guarantee that the content of this page will remain aligned with, or correctly interprets, the concepts covered by the FIBO ontology.
| IsDefinedBy URI of an entity that is defined via an imported vocabulary. | https://spec.edmcouncil.org/fibo/ontology/DER/DerivativesContracts/Options/index-en.html + |
