How to use FOVA - Determination of option rates

SAP Transaction Code - Details

• Transaction Code: FOVA

  Description: Determination of option rates

  Release: S/4HANA and ECC 6

• • Program: RIVOPTER

    Screen: 0

    Authorization Object:

  • Development Package: FVVI

    Package Description: R/3 appl.dev. for Financial Assets Management: Real estate

    Parent Package: APPL

  • Module/Component: RE

    Description: Real Estate Management

Smart SAP Assistant

• SAP Tcode: FOVA - Determination of option rates

  
  Overview:
  The SAP transaction code FOVA is used to determine option rates. This code is used to calculate the rate of an option, which is the price of a financial instrument that gives the holder the right, but not the obligation, to buy or sell an underlying asset at a predetermined price on or before a specified date. 
  
  Functionality: 
  The FOVA transaction code allows users to determine the rate of an option based on the current market conditions. It takes into account factors such as the underlying asset's price, volatility, and time to expiration. The rate calculated by this code can be used to determine the value of an option and can be used in pricing models. 
  
  Step-by-step How to Use: 
  1. Enter transaction code FOVA in the command field. 
  2. Enter the relevant data such as the underlying asset's price, volatility, and time to expiration. 
  3. Click “Calculate” to determine the rate of the option. 
  4. The rate will be displayed on the screen. 
  
  Other Recommendations: 
  It is important to note that this transaction code only calculates the rate of an option and does not take into account other factors such as dividends or taxes that may affect its value. Additionally, it is recommended that users consult with a financial advisor before making any decisions based on this calculation.