Counterparty risk 


Introduced EAD System 

Future prospects 

Not able to fully reflect market conditions
ClosedMCS Method  FDMMCS Method  LSMCS Method  

Applicable Conditions  Price Formula  Price Formula not available, but able to use FDM  when two methods are not applicable 
Calculation Process 
01 Create Scenario
Replace negative numbers to zero after offsetting price 
01 Create Scenario
02 Price calculation using FDM

01 Create Scenario
02 Price calculation for each scenario
Estimate future cash flow from each scenario and calculate price 03 MtF Calculation

EAD system Output calculation process  Expected exposure method process 



Enable MAR exchange when activating monthly operation
Enter the parameters that are the basis for scenario creation