Description
Measure a corporate-action price's signed gap from a supplied reference.
Financial market terms depend on quote conventions, contract multipliers, rate units, horizons and signed positions. A price gap, intrinsic value or linear sensitivity is a limited scenario term rather than an executable price or complete valuation. Variance, volatility, fractional rates and basis points are different quantities.
Measure a corporate-action price's signed gap from a supplied reference.
When to use this tool
Use Corporate Action Reference Price Gap when checking the stated supplied market, valuation or exposure convention.
How to use the tool and how it works
- Enter referenceAdjustedPrice, observedPrice. Use the units and conventions below.
- Run the tool. Correct any format, range, or cross-field input error before interpreting the output.
- Read signedGap. Use the output convention below.
Return observedPrice-referenceAdjustedPrice as a signed gap.1
| Input field | Meaning and units | Accepted input |
|---|---|---|
| referenceAdjustedPrice | Reference Adjusted Price | Required. Finite number. |
| observedPrice | Observed Price | Required. Finite number. |
| Output field | Interpretation | Returned shape |
|---|---|---|
| signedGap | Signed first/second difference in the direction and units specified above. | Required. Finite number. |
{
"input": {
"referenceAdjustedPrice": 12,
"observedPrice": 17
},
"output": {
"signedGap": 5
}
}Limitations and assumptions
- The adjustment is supplied; no corporate action, price series, economic equivalence or actionable mispricing is determined.
- Inputs must satisfy both the field types and the cross-field conditions above. Invalid input causes an error; a successful false flag or documented placeholder is a different result.
- Numeric calculations use binary floating point unless exact decimal-integer arithmetic is explicitly stated. No hidden measurement tolerance or decimal rounding is added; nonfinite or out-of-contract results are rejected. Numeric signed-zero results are exported as zero.
Alternative or Complementary methods
Use verified contract/market data and a complete suitable valuation and risk model with qualified financial advice for actual investment or trading decisions.
References
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