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Edit Interest Rates
You can modify the interest rate by entering values in the Manual column of the Interest Rate Navigator.
To open the Interest Rate Navigator
- From the top-level Edit menu, select Interest Rate.
There are two interest rate columns, Forward Rate (Auto) and Forward Rate (Manual). The Auto column displays the U.S. default rate. The Manual column initially displays the U.S. rate (rather than an empty field), but the value is editable.
To edit interest rates
- Select the Manual radio button to make the column of manual rates editable.
- Double-click a rate in the Manual column and enter a new rate.
- Click Apply to save your changes.
To have the model calculations use your manual value, ensure that the Manual radio button is selected.
- To change the number of dates/rates displayed, right-click in the table and select Add new to create a blank editable row at the top of the table, or Remove Selected to delete the selected row.
- To globally apply an offset value or percent to all manual entries, enter an offset amount in the Interest Rate Offset field, and select the Percent or Absolute value radio button.
- The option model is calculated using the interest rate you define by selecting the Auto or Manual radio buttons.
- The annual percentage rate is a simple time deposit rate using the bank year calendar (360 days/year).
- The system converts the interest rate table to a set of exponential interest rates that apply on a spot-to-date basis for each expiry in a class. This is displayed as the IR value in the Contract Description Pane when you expand an expiry.
- The interest rate table applies across all option classes. When you change the interest rate in one option class, the change is applied to all option classes.
