How To Fix FTR_COEX035 - Exercise price entered should be greater than Strike price

SAP Error Message - Details

• Message type: E = Error

• Message class: FTR_COEX - Commodity Exposures

• Message number: 035

• Message text: Exercise price entered should be greater than Strike price

What causes this issue?

For Commodity Option Purchase transaction, Exercise price entered should
be greater than Strike price, whereas, for Commodity Option Sale
transaction, Exercise price entered should be lesser than Strike price.

System Response

Payment amount gets cleared.

How to fix this error?

Enter the Exercise price greater than Strike price in case of Purchase,
whereas, enter the Exercise price lesser than Strike price in case of
Sale.

Procedure for System Administrators

The system issues an error message and will not allow you to continue with this transaction until the error is resolved.

Error message extract from SAP system. Copyright SAP SE.

Smart SAP Assistant

• What is the cause and solution for SAP error message FTR_COEX035 - Exercise price entered should be greater than Strike price ?

  The SAP error message FTR_COEX035 indicates that there is an issue with the exercise price entered for a financial transaction, specifically in the context of options or derivatives. The error states that the exercise price must be greater than the strike price. Here’s a breakdown of the cause, potential solutions, and related information:
  Cause:
  
  Incorrect Input: The exercise price has been entered incorrectly, and it is less than or equal to the strike price.
  Misunderstanding of Terms: There may be confusion regarding the definitions of exercise price and strike price. The exercise price is the price at which the holder of an option can buy (call option) or sell (put option) the underlying asset, while the strike price is the predetermined price at which the option can be exercised.
  System Configuration: There may be configuration settings in SAP that enforce this rule, and they may not be aligned with the intended financial instruments being processed.
  
  Solution:
  
  Review Input Values: Check the values entered for both the exercise price and the strike price. Ensure that the exercise price is indeed greater than the strike price.
  Correct the Data: If the exercise price is incorrect, update it to a value that is greater than the strike price.
  Consult Documentation: Refer to the SAP documentation or help files related to financial transactions to ensure that you understand the requirements for entering these values.
  Check Configuration: If you believe the values are correct but still receive the error, consult with your SAP administrator or technical team to review the configuration settings related to financial instruments and ensure they are set up correctly.
  Testing: After making corrections, test the transaction again to ensure that the error does not persist.
  
  Related Information:
  
  Financial Instruments: Understanding the difference between exercise price and strike price is crucial in financial transactions involving options and derivatives.
  SAP Modules: This error is typically encountered in modules related to Treasury and Risk Management (TRM) or Financial Supply Chain Management (FSCM).
  User Roles: Ensure that users entering this data have the appropriate training and understanding of financial instruments to avoid similar errors in the future.
  Documentation and Support: If the issue persists, consider reaching out to SAP support or consulting the SAP community forums for additional insights and assistance.
  
  By addressing the input values and ensuring a clear understanding of the terms involved, you should be able to resolve the FTR_COEX035 error effectively.