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:
“The main object of a revolution is the liberation of man ... not the interpretation and application of some transcendental ideology.”
—Jean Genet (1910–1986)
“Most people, no doubt, when they espouse human rights, make their own mental reservations about the proper application of the word “human.””
—Suzanne Lafollette (1893–1983)
“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)