Forward Points Annualized Premium Calculator
Decode signed quoted forward points at explicit caller point scale and annual day basis; positive/negative premium is quote-direction dependent, not an investment return or covered-interest-arbitrage assurance.
Description
Forward points describe a signed adjustment to a spot quote at an explicit point scale.
Forward points describe a signed adjustment to a spot quote at an explicit point scale. Annualized premium depends on quote direction and day basis.1
The returned values include Outright forward quote, Signed annualized forward premium percent. The How section below explains the calculation, input rules and interpretation.
When to use Forward Points Annualized Premium Calculator
Use Forward Points Annualized Premium Calculator when you need to evaluate the supplied records under the calculation and evidence rules below. No investment return, market quote validation or covered-arbitrage assurance is supplied.
Prepare observed financial records and verified caller terms. Use one currency for integer minor-unit money and preserve leading zeros in identifier text. One basis point is 0.01 percentage points. Resolve dates, local clocks, counting rules and evidence flags as specified.
How to use Forward Points Annualized Premium Calculator and understand its results
- Prepare observed financial records and verified caller terms. Use one currency for integer minor-unit money and preserve leading zeros in identifier text. One basis point is 0.01 percentage points. Resolve dates, local clocks, counting rules and evidence flags as specified.
- Enter spotQuote, forwardPoints, callerQuoteUnitsPerPoint, tenorDays, callerAnnualDayBasis using the field table and calculation rules, then run the tool.
- Read outrightForwardQuote, signedAnnualizedForwardPremiumPercent. The explanation below defines the units, signs, ordering and any flags or placeholder values.
- If the tool reports an input issue, correct the values and run it again. Apply the stated assumptions when interpreting a successfully returned result.
| Input field | Meaning | Value type; see rules below | Requirement |
|---|---|---|---|
| spotQuote | Spot quote | number | Required |
| forwardPoints | Forward points | number | Required |
| callerQuoteUnitsPerPoint | Caller quote units per point | number | Required |
| tenorDays | Tenor days | number | Required |
| callerAnnualDayBasis | Caller annual day basis | number | Required |
Enter positive finite spot and point scale, finite signed points, integer tenor days 1–3660 and annual basis 1–366. Require positive outright forward. Return outright quote and signed annualized premium percent.
forward=spot+points×unitsPerPoint; annualizedPercent=100×points×unitsPerPoint/spot×annualBasis/tenorDays Units, indexing, boundary conditions and exceptional cases are defined in the calculation rules above.
| Output field | Meaning | Value type |
|---|---|---|
| outrightForwardQuote | Outright forward quote | number |
| signedAnnualizedForwardPremiumPercent | Signed annualized forward premium percent | number |
{
"input": {
"spotQuote": 1.2,
"forwardPoints": 10,
"callerQuoteUnitsPerPoint": 0.0001,
"tenorDays": 90,
"callerAnnualDayBasis": 360
},
"output": {
"outrightForwardQuote": 1.2009999999999998,
"signedAnnualizedForwardPremiumPercent": 0.33333333333333337
}
}Limitations and assumptions
No investment return, market quote validation or covered-arbitrage assurance is supplied.
Numeric inputs, where present, must be finite. Follow the calculation-specific rules for overflow, underflow and exceptional cases. Missing required fields, extra fields, wrong value types and violations of the calculation rules are input errors.
Alternative or Complementary methods
Use Cross Rate Triangular Computation Tool: A triangular cross quote multiplies two legs with the same bridge orientation. An observed direct quote exposes a signed discrepancy. For a complementary task, use Foreign Transaction Fee Total Cost Percent Calculator: Foreign-transaction cost can include a percentage fee plus independently observed conversion spread cost. The converted purchase base must exclude those extra costs.
References
Similar or alternative tools
- Cross Rate Triangular Computation Tool
A triangular cross quote multiplies two legs with the same bridge orientation. An observed direct quote exposes a signed discrepancy.
- Foreign Transaction Fee Total Cost Percent Calculator
Foreign-transaction cost can include a percentage fee plus independently observed conversion spread cost. The converted purchase base must exclude those extra costs.