Component 
Resolution  Exotic Options 




Function Definition 
oX_TakeOverForEx(Units, CompanyValue, ExchangeRate, ValueDate, ExpiryDate, Strike, RiskFreeD, RiskFreeF, RateVolatility, AssetVolatility, Correlation, OutputFlag) Values a takeover foreignexchange call using Schnabel and Wei's (1994) method 




Function Parameters 



Parameters 
Description 

Parameter Type 

Restrictions 

. 

Units 

Number of units of foreign currency. 

Long 


CompanyValue 

The value of the foreign company, expressed in units of foreign currency. 

Double 


ExchangeRate 

Spot exchange rate in units of domestic currency per unit of foreign currency. 

Double 


ValueDate 

Valuation date. 

Date 


ExpiryDate 

Expiry date of the option. 

Date 


Strike 

Strike price in units of domestic currency per unit of foreign currency 

Double 


RiskFreeD 

Domestic risk free interest rate, expressed as an annually compounded Actual 365 rate. 

Double 


RiskFreeF 

Foreign risk free interest rate, expressed as an annually compounded Actual 365 rate. 

Double 


RateVolatility 

Annualized volatility of the exchange rate, expressed as a decimal. 

Double 


AssetVolatility 

Annualized volatility of the underlying asset, expressed as a decimal. 

Double 


Correlation 

Correlation between the company value and the domestic exchange rate. 

Double 

Correlation > 1 

OutputFlag 

Indicates which result, or set of results, will be displayed in the worksheet. When returning more than one value, the function must be entered as an array function. 

Enumerated Constant 

0  Value & Greeks 
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