Abstract
A derivative security (also called contingent claim; cf. Definition 2.1 and discussion following it) is a financial contract whose value is derived from the value of another underlying, more basic, security, such as a stock or a bond. Common derivative securities are put options, call options, forward contracts, futures contracts, and swaps. These securities can be used for both speculation and hedging, but their creation and marketing are based much more on the latter use than the former.
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© 1998 Springer-Verlag New York, Inc.
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Karatzas, I., Shreve, S.E. (1998). Contingent Claim Valuation in a Complete Market. In: Methods of Mathematical Finance. Probability Theory and Stochastic Modelling, vol 39. Springer, New York, NY. https://doi.org/10.1007/978-1-4939-6845-9_2
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DOI: https://doi.org/10.1007/978-1-4939-6845-9_2
Publisher Name: Springer, New York, NY
Print ISBN: 978-1-4939-6814-5
Online ISBN: 978-1-4939-6845-9
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