CONV_INFLATION
The CONV_INFLATION event requests an inflation
correction for a specific investment option.
This event ensures that inflation is properly administered before
profits are measured or distributed. It directly influences the ideal valuation of the
option.
Fields
| Field | Type | Description | Value |
|---|---|---|---|
Type |
string | Identifies the event | CONV_INFLATION |
Timestamp |
DateTime (ISO-8601) | The timestamp of the event | |
Option |
string | The identifier for the investment option | |
Invested_amount |
decimal(20,4) | The total invested amount in the investment fund | |
Inflation_factor |
decimal(20,4) | The factor by which monetary amounts should be multiplied |
Inflation Factor
The inflation factor is administered as a multiplier rather than a
percentage. This approach keeps calculation logic simple and consistent.
For example, a 2% inflation is represented by a factor of
1.02.
Purpose
This event allows the system to adjust valuations for inflation, ensuring fair and accurate profit calculations.
By J.W. Morsink