Financial Instrument Valuation

As financial transactions become more sophisticated nowadays, the use of various types of financial instruments has increased. These instruments can include convertible bonds, convertible preference shares, warrants, call and put options, etc. Valuing these instruments accurately is essential for financial reporting purpose.

The valuation of complex financial instruments typically requires customized models that can capture the specific terms and features of the instrument. While the binomial model and Black-Scholes model are widely used for valuation, other models such as the Monte Carlo model can also be applicable in certain situations.

The selection of the most suitable valuation model relies on the unique characteristics and features of the financial instrument. Several factors, including the instrument's complexity, prevailing market conditions, and the availability of relevant data, play a significant role in determining the appropriate valuation methodology. WeValue valuation specialists are strong in performing the valuation of various kinds of financial instruments for financial reporting, investment portfolio evaluation or internal evaluation. Typical financial instruments include: