fintech-algorithms

Base-Date/Base-Value Initialization

Install and import

bash
npm install fintech-algorithms
ts
import { calculate } from "fintech-algorithms/index-and-benchmark-engineering/index-initialization-and-continuity/base-date-base-value-initialization";

Signature

calculate(data)

Worked example

verified This is the worked example published in the article, replayed by the test suite on every run. The output cannot drift.

Input

data
{
  "constituents": [
    {
      "id": "ALFA",
      "price": 50,
      "shares": 1000,
      "floatFactor": 0.8,
      "fx": 1
    },
    {
      "id": "BETA",
      "price": 80,
      "shares": 600,
      "floatFactor": 0.75,
      "fx": 1
    },
    {
      "id": "GAMMA",
      "price": 40,
      "shares": 1200,
      "floatFactor": 0.9,
      "fx": 1
    }
  ],
  "baseLevel": 1000,
  "baseDate": "2026-01-02"
}

Call

calculate(data)

Returns

object with 3 fields: marketValue, divisor, indexLevel

{
  "marketValue": 119200,
  "divisor": 119.2,
  "indexLevel": 1000
}

Diagrams

Base-Date/Base-Value Initialization — article hero
Base-Date/Base-Value Initialization — failure guard
Base-Date/Base-Value Initialization — worked example

Calculation flow

Base-Date/Base-Value Initialization calculation flow 
flowchart LR
    A["Point-in-time inputs"] --> B["Validate units and timing"]
    B --> C{"Contract feasible?"}
    C -->|No| D["Reject with reason"]
    C -->|Yes| E["Calculate Base-Date/Base-Value Initialization"]
    E --> F["Recompute invariants"]
    F --> G{"Checks pass?"}
    G -->|No| D
    G -->|Yes| H["Publish audited output"]
Base-Date/Base-Value Initialization methodology state 
stateDiagram-v2
    [*] --> FrozenInputs
    FrozenInputs --> Validated: contract passes
    FrozenInputs --> Rejected: missing or infeasible
    Validated --> Calculated: apply named rule
    Calculated --> Audited: invariants pass
    Calculated --> Rejected: invariant fails
    Audited --> Published: version and timestamp recorded
    Published --> Revised: approved correction
    Revised --> FrozenInputs: rebuild from retained source state

How it works

This page states the contract — how to call it correctly. The article explains the concept: why it works, and where it breaks.

Read the article →

References