How To Fix FTR_COEX036 - Exercise price entered should be lesser than Strike price

SAP Error Message - Details

• Message type: E = Error

• Message class: FTR_COEX - Commodity Exposures

• Message number: 036

• Message text: Exercise price entered should be lesser 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_COEX036 - Exercise price entered should be lesser than Strike price ?

  The SAP error message FTR_COEX036 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 less than the strike price. Here’s a breakdown of the cause, solution, and related information:
  Cause:
  
  Incorrect Data Entry: The exercise price (the price at which the holder of the option can buy or sell the underlying asset) has been entered incorrectly and is greater than or equal to the strike price (the price at which the option can be exercised).
  Misunderstanding of Terms: There may be confusion regarding the definitions of exercise price and strike price, leading to incorrect values being input.
  System Configuration: There may be a configuration issue in the SAP system that is not allowing the correct relationship between these two prices.
  
  Solution:
  
  Verify Input Values: Check the values entered for both the exercise price and the strike price. Ensure that the exercise price is indeed less than the strike price.
  Correct the Data: If the exercise price is incorrectly entered, correct it to a value that is less than the strike price.
  Consult Documentation: Review the relevant documentation or guidelines for entering financial transactions in SAP to ensure compliance with the expected formats and values.
  System Configuration Check: If the values are correct and the error persists, consult with your SAP administrator or technical team to check if there are any configuration issues that need to be addressed.
  Training and Awareness: Ensure that users entering this data are adequately trained on the financial instruments and the specific requirements for entering exercise and strike prices.
  
  Related Information:
  
  Financial Instruments: Understanding the difference between exercise price and strike price is crucial in the context of options trading and derivatives.
  SAP Modules: This error is typically encountered in the SAP Treasury and Risk Management (TRM) module, which deals with financial transactions and instruments.
  Documentation and Support: Refer to SAP Help Portal or community forums for additional insights and troubleshooting steps related to this error message.
  
  By following these steps, you should be able to resolve the error and ensure that the financial transaction is processed correctly.