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From the economic perspective, financial derivatives are money flows that are conditioned stochastically and discounted to present worth. The market danger fundamental in the underlying possession is attached to the financial derivative through contractual agreements and hence can be traded separately. The underlying possession does not need to be acquired.
This likewise supplies a substantial amount of flexibility concerning the agreement design. That legal liberty enables acquired designers to modify the involvement in the efficiency of the hidden asset practically arbitrarily. Thus, the participation in the market worth of the underlying can be successfully weaker, more powerful (take advantage of result), or carried out as inverse. https://ccm.net/profile/user/sivneycgjw |
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