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Screen 5:  Financial Engineering

This is a very powerful state of the art module.  It lets you draw and solve for desired exposure or risk profiles.  To draw a profile, click on one of the boxes and drag up or down.  You can specify the following constraints when solving for the position that best mimics this exposure profile:

i.  the relevant range of payoffs under consideration (i.e. Min Payoff to Max Payoff)

ii.  the time horizon (i.e. at what future point in time) with which you are working

iii.  the number of options or allowable complexity of the position you want to engineer

Outputs are the position that best recreates your desired exposure profile module lets you go beyond standard option trading strategies construct option payoff/profit diagrams for any exposure profile that you draw. 

Note:  Often the analytical solution is more complex than you would want to implement.  So by restricting the set of contracts it searches over is the way of simplifying the analytical solution.

OS Financial Trading System, PO Box 11356, Pittsburgh, PA 15238 USA, Phone 1-800-967-9897, Fax 1-412-967-5958, Email fts@ftsweb.com,

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