Definition: The process of determining the fair value of financial instruments like options, futures, and swaps that are based on an underlying asset’s price, volatility, and interest rates.
Example: The Black-Scholes model, binomial trees, and Monte Carlo simulations are all common methods of derivatives valuation.
Explore the IVP NAV Solution
The IVP NAV Solution takes derivatives valuation into account. It enables real-time NAV finalization for multiple funds with complete traceability for specific NAV components. It centralizes NAV oversight in one intuitive experience with automated exception identification and trend analysis, so asset managers can quickly and easily remediate NAV anomalies at the key component, share class, and security level.
