Description
For useLogChange, compute exp(passThroughElasticity × exchangeRateChangeFraction).
An exchange quote states how much of one currency corresponds to another. Reciprocals, price-level factors, valuation bridges, and pass-through models require consistent orientation.
For useLogChange, compute exp(passThroughElasticity × exchangeRateChangeFraction).
When to use this tool
Use Exchange Rate Pass Through One Step when you need one supplied exchange-factor or valuation calculation.
How to use the tool and how it works
- Enter initialPrice, exchangeRateChangeFraction, passThroughElasticity, useLogChange. Use the units and conventions below.
- Run the tool. Correct any format, range, or cross-field input error before interpreting the output.
- Read priceFactor, newPrice. Use the output convention below.
For useLogChange, compute exp(passThroughElasticity × exchangeRateChangeFraction). Otherwise compute (1 + change)^elasticity and require change > -1. Multiply the factor by initialPrice.1
| Input field | Meaning and units | Accepted input |
|---|---|---|
| initialPrice | Initial Price | Required. Finite number. |
| exchangeRateChangeFraction | Ordinary fractional change when useLogChange is false; log change when true. | Required. Finite number. |
| passThroughElasticity | Pass Through Elasticity | Required. Finite number. |
| useLogChange | Use Log Change | Required. Boolean. |
| Output field | Interpretation | Returned shape |
|---|---|---|
| priceFactor | Price Factor | Required. Finite number. |
| newPrice | New Price | Required. Finite number. |
{
"input": {
"initialPrice": 100,
"exchangeRateChangeFraction": 0.21,
"passThroughElasticity": 0.5,
"useLogChange": false
},
"output": {
"priceFactor": 1.1,
"newPrice": 110.00000000000001
}
}Limitations and assumptions
- The field represents a log change in the first mode and an ordinary fraction in the second; elasticity is supplied and no pass-through is estimated.
- 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
Check currency direction, quote date, bid/ask conventions, and the full transaction or model before interpreting the result.
References
Similar or alternative tools
- External Adjustment Netexport Exchange Sensitivity
Multiply exportValue and importValue separately by their elasticity and signed exchangeChange.
- Exchange Index Quote Inversion Token
Return 100 × currentQuote/baseQuote, or 100 × baseQuote/currentQuote when invertQuote is true.