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

FTR_COEX036 - Overview

• 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.

FTR_COEX036 - Details

• 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