Message type: E = Error
Message class: T8 - Analysis system evaluations
Message number: 129
Message text: American-style option cannot be valued
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T8129
- American-style option cannot be valued ?The SAP error message T8129, which states "American-style option cannot be valued," typically occurs in the context of financial derivatives and options pricing within the SAP system, particularly in the SAP Treasury and Risk Management module. This error indicates that the system is unable to calculate the value of an American-style option due to certain conditions or missing data. Causes: Missing Parameters: The necessary parameters for valuing the option (such as strike price, underlying asset price, volatility, interest rates, etc.) may not be properly defined or may be missing. Incorrect Option Type: The system may be configured to handle only European-style options, which can be exercised only at expiration, while American-style options can be exercised at any time before expiration. Valuation Model Issues: The valuation model being used may not support American-style options, which require more complex pricing models (like binomial trees or finite difference methods). Data Inconsistencies: There may be inconsistencies or errors in
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