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:
“Courage is resistance to fear, mastery of fear—not absence of fear. Except a creature be part coward it is not a compliment to say it is brave; it is merely a loose application of the word. Consider the flea!—incomparably the bravest of all the creatures of God, if ignorance of fear were courage.”
—Mark Twain [Samuel Langhorne Clemens] (1835–1910)
“May my application so close
To so endless a repetition
Not make me tired and morose
And resentful of man’s condition.”
—Robert Frost (1874–1963)
“Science is intimately integrated with the whole social structure and cultural tradition. They mutually support one other—only in certain types of society can science flourish, and conversely without a continuous and healthy development and application of science such a society cannot function properly.”
—Talcott Parsons (1902–1979)