Outturn - Revision history

Doug: Layout.

2024-07-20T10:19:16Z

Layout.

← Older revision		Revision as of 10:19, 20 July 2024
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	'''1.'''		1. ''Actual market prices and rates.''

	'Outturn' market rates are the rates or prices which actually occur in the relevant market - in other words the rates which 'turn out' to be the case in the market.		'Outturn' market rates are the rates or prices which actually occur in the relevant market - in other words the rates which 'turn out' to be the case in the market.
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	'''2.'''		2. ''Results and net results.''

	The result or the net result of any activity.		The result or the net result of any activity.


	'''3.'''		3. ''Hedging - hedged outcomes achieved.''

	The all-in hedged rate or outcome achieved, as a result of hedging activities.		The all-in hedged rate or outcome achieved, as a result of hedging activities.
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	== See also ==		== See also ==
	* [[Expectations theory]]		* [[Expectations theory]]
			* [[Fat tail]]
	* [[Hedging]]		* [[Hedging]]
			* [[Tail risk]]

	[[Category:Manage_risks]]		[[Category:Manage_risks]]

imported>Doug Williamson: Layout.

2016-04-01T06:45:02Z

Layout.

← Older revision		Revision as of 06:45, 1 April 2016
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	1.		'''1.'''

	'Outturn' market rates are the rates or prices which actually occur in the relevant market - in other words the rates which 'turn out' to be the case in the market.		'Outturn' market rates are the rates or prices which actually occur in the relevant market - in other words the rates which 'turn out' to be the case in the market.
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	i. At an outturn rate of 5%		'''''(i) At an outturn rate of 5%'''''

	The hedged rate borrowing achieved:		The hedged rate borrowing achieved:
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	ii. At an outturn rate of 8%.		'''''(ii) At an outturn rate of 8%'''''

	The hedged borrowing rate achieved:		The hedged borrowing rate achieved:
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	2.		'''2.'''

	The result or the net result of any activity.		The result or the net result of any activity.


	3.		'''3.'''

	The all-in hedged rate or outcome achieved, as a result of hedging activities.		The all-in hedged rate or outcome achieved, as a result of hedging activities.

imported>Doug Williamson: Colour change of example headers

2015-11-13T15:02:47Z

Colour change of example headers

← Older revision		Revision as of 15:02, 13 November 2015
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	'''Example 1'''		<span style="color:#4B0082">'''Example 1'''</span>

	If hedging a borrowing with an interest rate option with a strike price of 6%.		If hedging a borrowing with an interest rate option with a strike price of 6%.
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	'''Example 2'''		<span style="color:#4B0082">'''Example 2'''</span>

	So continuing the same example, and assuming an option premium paid of 0.5%.		So continuing the same example, and assuming an option premium paid of 0.5%.

imported>Doug Williamson: Standardise appearance of page

2015-03-16T16:58:48Z

Standardise appearance of page

← Older revision		Revision as of 16:58, 16 March 2015
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	~~'''~~1.~~'''~~		1.

	'Outturn' market rates are the rates or prices which actually occur in the relevant market - in other words the rates which 'turn out' to be the case in the market.		'Outturn' market rates are the rates or prices which actually occur in the relevant market - in other words the rates which 'turn out' to be the case in the market.
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	~~For example if~~ hedging a borrowing with an interest rate option with a strike price of 6%.		'''Example 1'''

			If hedging a borrowing with an interest rate option with a strike price of 6%.

	At an outturn market rate of 8% the borrower's option would be exercised (and pay out to the holder assuming it was cash-settled).		At an outturn market rate of 8% the borrower's option would be exercised (and pay out to the holder assuming it was cash-settled).
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	Outturn rates in this sense are related to - but different from - the all-in hedged rates achieved.		Outturn rates in this sense are related to - but different from - the all-in hedged rates achieved.

			The ''hedged rate achieved'' means the total income or expense resulting, taking account both of the underlying exposure and of the hedging instrument.


	~~The~~ ''~~hedged rate achieved~~'' ~~means the total income or expense resulting, taking account both of the underlying exposure and of the hedging instrument.~~		'''Example 2'''

	So continuing the same example, and assuming an option premium paid of 0.5%.		So continuing the same example, and assuming an option premium paid of 0.5%.

	~~::i. At an outturn rate of 5%, the hedged rate borrowing achieved = 5% market rate + 0.5% option premium = 5.5%.~~

	::ii. At an outturn rate of 8%~~, the~~ hedged borrowing rate achieved = 6% option strike price + 0.5% option premium = 6.5%.		i. At an outturn rate of 5%

			The hedged rate borrowing achieved:

			= 5% market rate + 0.5% option premium

			= 5.5%.


			ii. At an outturn rate of 8%.

			The hedged borrowing rate achieved:

			= 6% option strike price + 0.5% option premium

			= 6.5%.



	~~'''~~2.~~'''~~		2.

	The result or the net result of any activity.		The result or the net result of any activity.


	~~'''~~3.~~'''~~		3.

	The all-in hedged rate or outcome achieved, as a result of hedging activities.		The all-in hedged rate or outcome achieved, as a result of hedging activities.

imported>Doug Williamson: Make branding consistent

2014-11-26T10:36:40Z

Make branding consistent

← Older revision		Revision as of 10:36, 26 November 2014
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	Outturn market rates may be compared with, for example, forecast rates, expected rates, or hedged rates.		Outturn market rates may be compared with, for example, forecast rates, expected rates, or hedged rates.


	For example if hedging a borrowing with an interest rate option with a strike price of 6%.		For example if hedging a borrowing with an interest rate option with a strike price of 6%.
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	At an outturn market rate of 5% the borrower's option would lapse worthless.		At an outturn market rate of 5% the borrower's option would lapse worthless.


	Outturn rates in this sense are related to - but different from - the all-in hedged rates achieved.		Outturn rates in this sense are related to - but different from - the all-in hedged rates achieved.


	The ''hedged rate achieved'' means the total income or expense resulting, taking account both of the underlying exposure and of the hedging instrument.		The ''hedged rate achieved'' means the total income or expense resulting, taking account both of the underlying exposure and of the hedging instrument.
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	* [[Expectations theory]]		* [[Expectations theory]]
	* [[Hedging]]		* [[Hedging]]

			[[Category:Manage_risks]]

imported>Doug Williamson: Format numbering.

2013-11-07T20:26:30Z

Format numbering.

← Older revision		Revision as of 20:26, 7 November 2013
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	1.		'''1.'''

	'Outturn' market rates are the rates or prices which actually occur in the relevant market - in other words the rates which 'turn out' to be the case in the market.		'Outturn' market rates are the rates or prices which actually occur in the relevant market - in other words the rates which 'turn out' to be the case in the market.
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	2.		'''2.'''

	The result or the net result of any activity.		The result or the net result of any activity.


	3.		'''3.'''

	The all-in hedged rate or outcome achieved, as a result of hedging activities.		The all-in hedged rate or outcome achieved, as a result of hedging activities.

imported>Doug Williamson: Spacing 21/8/13

2013-08-21T14:49:27Z

Spacing 21/8/13

← Older revision		Revision as of 14:49, 21 August 2013
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	1.		1.

	'Outturn' market rates are the rates or prices which actually occur in the relevant market - in other words the rates which 'turn out' to be the case in the market.		'Outturn' market rates are the rates or prices which actually occur in the relevant market - in other words the rates which 'turn out' to be the case in the market.

	Outturn market rates may be compared with, for example, forecast rates, expected rates, or hedged rates.		Outturn market rates may be compared with, for example, forecast rates, expected rates, or hedged rates.

	For example if hedging a borrowing with an interest rate option with a strike price of 6%.		For example if hedging a borrowing with an interest rate option with a strike price of 6%.

	At an outturn market rate of 8% the borrower's option would be exercised (and pay out to the holder assuming it was cash-settled).		At an outturn market rate of 8% the borrower's option would be exercised (and pay out to the holder assuming it was cash-settled).

	At an outturn market rate of 5% the borrower's option would lapse worthless.		At an outturn market rate of 5% the borrower's option would lapse worthless.

	Outturn rates in this sense are related to - but different from - the all-in hedged rates achieved. The ''hedged rate achieved'' means the total income or expense resulting, taking account both of the underlying exposure and of the hedging instrument.		Outturn rates in this sense are related to - but different from - the all-in hedged rates achieved.

			The ''hedged rate achieved'' means the total income or expense resulting, taking account both of the underlying exposure and of the hedging instrument.

	So continuing the same example, and assuming an option premium paid of 0.5%.		So continuing the same example, and assuming an option premium paid of 0.5%.

	i. At an outturn rate of 5%, the hedged rate borrowing achieved = 5% market rate + 0.5% option premium = 5.5%.		::i. At an outturn rate of 5%, the hedged rate borrowing achieved = 5% market rate + 0.5% option premium = 5.5%.

			::ii. At an outturn rate of 8%, the hedged borrowing rate achieved = 6% option strike price + 0.5% option premium = 6.5%.

	~~ii. At an outturn rate of 8%, the hedged borrowing rate achieved = 6% option strike price + 0.5% option premium = 6.5%.~~

	2.		2.

	The result or the net result of any activity.		The result or the net result of any activity.


	3.		3.

	The all-in hedged rate or outcome achieved, as a result of hedging activities.		The all-in hedged rate or outcome achieved, as a result of hedging activities.


	== See also ==		== See also ==
	* [[Expectations theory]]		* [[Expectations theory]]
	* [[Hedging]]		* [[Hedging]]

imported>Administrator: CSV import

2012-10-23T14:20:14Z

CSV import

New page

1.
'Outturn' market rates are the rates or prices which actually occur in the relevant market - in other words the rates which 'turn out' to be the case in the market.
Outturn market rates may be compared with, for example, forecast rates, expected rates, or hedged rates.

For example if hedging a borrowing with an interest rate option with a strike price of 6%.
At an outturn market rate of 8% the borrower's option would be exercised (and pay out to the holder assuming it was cash-settled).
At an outturn market rate of 5% the borrower's option would lapse worthless.

Outturn rates in this sense are related to - but different from - the all-in hedged rates achieved. The ''hedged rate achieved'' means the total income or expense resulting, taking account both of the underlying exposure and of the hedging instrument.

So continuing the same example, and assuming an option premium paid of 0.5%.

i. At an outturn rate of 5%, the hedged rate borrowing achieved = 5% market rate + 0.5% option premium = 5.5%.

ii. At an outturn rate of 8%, the hedged borrowing rate achieved = 6% option strike price + 0.5% option premium = 6.5%.

2.
The result or the net result of any activity.

3.
The all-in hedged rate or outcome achieved, as a result of hedging activities.

== See also ==
* [[Expectations theory]]
* [[Hedging]]