Replicating strategy
Encyclopedia
In Finance
a Replicating Strategy of a particular financial instrument is a set of liquid
, usually exchange-traded assets with the same net payoff
.
Finance
"Finance" is often defined simply as the management of money or “funds” management Modern finance, however, is a family of business activity that includes the origination, marketing, and management of cash and money surrogates through a variety of capital accounts, instruments, and markets created...
a Replicating Strategy of a particular financial instrument is a set of liquid
Market liquidity
In business, economics or investment, market liquidity is an asset's ability to be sold without causing a significant movement in the price and with minimum loss of value...
, usually exchange-traded assets with the same net payoff
Payoff
Payoff may refer to:* Bribery* A payoff dominant equilibrium in game theory* Payoff matrix or payoff function in a normal form game in game theory* Payoff set in set theory* Payoff, a 1991 TV film starring Keith Carradine...
.