Redemption Claim
Redemption Claim is a direct subtype of Contingent Claim
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TYPE INCLUSION RELATIONSHIPS
AVAILABLE FUNCTIONS
AVAILABLE CREATE FUNCTION KEYS
TYPICAL OBJECTS OF TYPE Redemption Claim
This type represents the redemption payment associated with the related Structured Product
Formally, it can be regarded as a payment conditional on the occurrence of the associated event at each applicable observation timet, which event may be referred here as the redemption event
As described in Contingent Claim, the three main ingredients of every Contingent Claim are the condition the ON payoff and the OFF payoff
In the case of a Redemption Claim, these are as below:
Condition
This claim's condition is trivial, in the sense it is assumed to be satisfied at each observation time
As described in Contingent Claim, technically every condition is represented by a predicate function 𝘨 associated with the key Trigger Fn of its container typeContingent Claim
Here 𝘨 is set to RealBoolTransf, which is a predicate function that always returns TRUE
ON Payoff
This concerns the payoff amount ON amt associated with the condition being satisfied at any applicable observation time t
Since the condition is always satisfied, ON amt is always calculated at each applicable t
Technically, the amount ON amt is calculated by the function ƒON associated with the key On Pmt Fn of its direct container typeContingent Claim
The function ƒON is represented by an object of type Timed Functional Sum Fn, which is effectively the sum of two functions:
ƒON = ƒPRINCIPAL + ƒINTEREST
The first function ƒPRINCIPAL is a constant function that returns a fixed number representing the note's principal, if any.
It is represented by an object of type Constant Fn
The second function ƒINTEREST is a time-dependent function that returns a number representing the accrued interest, if any.
It is represented by an object of type Interest Fn
OFF Payoff
This claim has no payoff associated with the condition not being satisfied.