Method and system for average spot basket pricing options...

Data processing: financial – business practice – management – or co – Automated electrical financial or business practice or... – Finance

Reexamination Certificate

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C705S03600T, C705S001100

Reexamination Certificate

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07813979

ABSTRACT:
Methods and systems of calculating a net present value (“NPV”) of an average spot basket option are provided. One method includes reading an evaluation date, contract data and market data associated with a basket, and calculating net present value of the average spot basket option by applying Black-Scholes theory to the sum of spot prices of the underlying assets of the basket, wherein the sum of spot prices of the underlying assets of the basket is represented as a single underlying asset. Another method includes calculating first and second moments of a sum of weighted spot price values of underlying assets of a basket and applying Black-Scholes theory using these moments to calculate NPV. Another method includes calculating a NPV according to a set of equations and displaying the calculated NPV. A system includes a memory and a processor that executes code to in accordance with the methods described herein.

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