What do you mean by Agio ?
Agio is a term borrowed from Italian that is used in finance to refer to a premium or differential between the nominal value and the market value of a financial instrument, currency, or commodity. In bond markets, agio refers to the premium paid for a bond over its face value. This can occur when interest rates have fallen since the bond was issued, making the bond's fixed interest payments more valuable. In currency trading, agio can refer to a premium or discount applied to the exchange rate of a currency. This premium or discount may be due to factors such as supply and demand imbalances, economic conditions, or government policies affecting the currency. In some contexts, agio can refer to the premium at which a stock is trading above its nominal or par value. Agio represents the premium or discount associated with the transaction and reflects the difference between the perceived or actual value of the financial instrument and its nominal value.
How to Calculate Agio?
Agio calculator uses Agio = (Purchase Price)+Option Warrant Price/Exchange Ratio-Share Price to calculate the Agio, Agio signifies the difference in value between the price paid and the face value or official value of an asset. Agio is denoted by AO symbol.
How to calculate Agio using this online calculator? To use this online calculator for Agio, enter Purchase Price (PP), Option Warrant Price (OWP), Exchange Ratio (ER) & Share Price (SP) and hit the calculate button. Here is how the Agio calculation can be explained with given input values -> 1784.214 = (1500)+600/2.1-1.5.