Examples of Overnight Interest Rate in a sentence
In particular, if the rate specified as the Overnight Interest Rate Option is not published (or if published, is determined by the index sponsor to be manifestly incorrect) for a period longer than three Overnight Interest Rate Business Days (as defined in the index rules of the Money Market Index), the index sponsor may substitute the Overnight Interest Rate Option with an alternative overnight interest rate option for the relevant currency.
The value of the Money Market Index is a simple function of its previous index value and the relevant overnight interest rate option (the "Overnight Interest Rate Option").
The Money Market Index is based on historical performance of the Overnight Interest Rate Option.
Further information regarding the Overnight Interest Rate can be found online at the Firm’s main site.
From Friday to Monday Overnight Interest Rate is charged once and from Wednesday to Thursday this is charged in triple rate; the Overnight Interest Rate of INFINOX derives from the overnight rate provided by third parties such as Bloomberg and/or Reuters; the Firm updates such rates as often as it deems necessary.
Such analytical analysis may include, for example, but is not limited to, empirical cash flow valuations using Libor, Euribor and Overnight Interest Rate bootstrapped Discount Factor curves and forward forecasting curves, credit adjustment and valuation models and options modelling using, but not limited to, industry standard Black Scholes, adjusted Black Scholes (Garman Kohlhagen) and Stochastic Options models on specific option structures.
In the event that the index produces a positive return on a particular day, the Fund should record a positive return equivalent to twice the daily percentage change in the level of the Underlying Index on an inverse basis (before adjustment reflecting the Overnight Interest Rate and Borrowing Cost built into the leveraged methodology and fees and expenses applied at Fund–level).Notes to the Financial Statements (continued)For the financial period ended 31 December 2020 (continued)11.
Market Risk (continued)(i) Price Risk (continued) Leveraged Inverse Funds (continued)Conversely, in the event the index produces a negative return on a particular day, the Fund will record anegative return equivalent to twice the percentage change in the level of the Underlying Index on an inverse basis that day (before adjustment reflecting the Overnight Interest Rate and Borrowing Cost built into the leveraged methodology and fees and expenses applied at Fund–level).
Even after taking into account the Overnight Interest Rate and Borrowing Cost built into the leverage methodology and the fees and expenses applied at Fund–level, investors should not expect the actual percentage return for shares in the Fund to be equal to the percentage change in the Unbalanced Leveraged Return for periods of longer than one day.
This means that the Fund will seek to deliver an Inverse Return to Shareholders which corresponds to twice the daily percentage change in the level of the Underlying Index on an inverse basis on that day plus the Overnight Interest Rate and less the Borrowing Cost (both of which are built into the leveraged methodology) and fees and expenses levied at Fund–level.