Application
When hedging according to formulas like Black–Scholes a risk-free bond would be purchased (or sold) accordingly.
Read more about this topic: Risk-free Bond
Famous quotes containing the word application:
“There are very few things impossible in themselves; and we do not want means to conquer difficulties so much as application and resolution in the use of means.”
—François, Duc De La Rochefoucauld (1613–1680)
“The human mind is capable of excitement without the application of gross and violent stimulants; and he must have a very faint perception of its beauty and dignity who does not know this.”
—William Wordsworth (1770–1850)
“Preaching is the expression of the moral sentiment in application to the duties of life.”
—Ralph Waldo Emerson (1803–1882)