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Mark, here are some words on how it works
tks -----Original Message----- From: Duggan, Caroline Sent: 25 May 2001 16:22 To: Quick, Robert; Aziz, Arfan Subject: Re: Worldscale Pricing FYI on worldscale pricing ----- Forwarded by Caroline Duggan/LON/ECT on 25/05/2001 16:26 ----- Scott Moncrieff 11/10/2000 16:41 To: Anna Gardiner/LON/ECT@ECT cc: Caroline Duggan/LON/ECT@ECT, Robert Quick/LON/ECT@ECT Subject: Re: Worldscale Pricing e.g. somebody buys the spread at worldscale 210 for november. they buy 16 contracts (5000 mts each) to emulate a 80,000 voyage cross north sea. (the current market say is 200 / 210) the spot market goes through the roof, and the average for november ends up to be 220 settlement is 5000 x 16 = 80,000 mts x 3.50 x 220% minus 80,000 mts x 3.50 x 210% = $616,000 - $588,000 = $28,000 settlement figure. so the worldscale 'spot' rate is a percentage of the flat rate (3.50) for the voyage in question i.e. the spot market at the moment is worldscale 205 which means the equivalent $/pmt rate is 3.50 x 205% = $7.175 Anna Gardiner 11/10/2000 16:23 To: Scott Moncrieff/LON/ECT@ECT cc: Caroline Duggan/LON/ECT@ECT Subject: Worldscale Pricing Scott Could you let me know in writing you the full calculation for reaching your current dollar price that you are offering on EOL. I understand that you are basing it from your flat rate price of 3.50. I would also like to know if the worldscale rate is always a set percentage of the USD rate or does it ever fluctuate? Thanks Anna
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