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Contingent claim |
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Contingent claim A claim that can be made only if one or more specified outcomes occur. How to thank TFD for its existence? Tell a friend about us, add a link to this page, add the site to iGoogle, or visit webmaster's page for free fun content. |
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| The contingent claim method integrates vesting and intrinsic value consistent with the modern financial theory, such that the correlation between vesting and intrinsic value is taken into account. A call option is a contingent claim because the holder has the right, but not the obligation, to exercise the option. The high degree of dollarization in bank deposits (about 90%) amounts to a contingent claim on international reserves - despite the adoption of a flexible exchange rate - pressuring the country's already low international liquidity. |
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