Price earnings derivative financial product
AssigneeJPMorgan Chase Bank, National Association
InventorsRama Variankaval, Cassio Calil, Santosh Nabar, Joseph Ghartey
Life of this patent
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Abstract
A system for and method of using a financial instrument to take a view on a price-to-earnings ratio for a set of one or more equities. The system and method may be used to commodify the price-to-earnings ratio for one or more equities, such a as a stock or an index. The system and method may include a financial instrument that allows a user to take a view on an earnings, or ratio comprising price and earnings, for underlying equities.
Claims10
A system for using an earnings to value a financial product based upon at least one equity as part of a transaction, the system comprising;
- a programmed computer processor configured m calculate a payoff using an earnings function and a quantity, in accordance with a contract, the earnings function outputting a strike earnings;
- wherein the contract specifies the earnings function and the earnings function is associated with a set comprising at least one equity, the contract further specifying the quantity associated with the set comprising at least one equity, and a transaction comprises at least part of the payoff.
A system of using an earnings to value a financial product based upon at least one equity, as part of a transaction, the system comprising:
- a processor;
- and
- a memory comprising computer-readable instructions which when executed by the processor cause the processor to perform the steps comprising:
- recording an earnings function for future use, the earnings function being associated with a set comprising at least one equity, the set comprising at least one equity being associated with a quantity;
- calculating a payoff using the earnings function, and the quantity, the earnings function outputting a strike earnings;
- and
- conducting a transaction, subsequent to the calculating, wherein the value comprises at least part of the transaction.
Dependencies are inferred from the claim text.