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Answer Posted / bjanmejai
A simplified derivative instrument that allows
investors to hedge or speculate on economic
events such as housing prices, commodity prices,
interest rates, currencies and economic indicators.
The price for a hedgelet contract is based on the
prevailing market price determined by participants
in the market. Every contract has the same defined
payout scheme: $10 for a correct contract and $0
for an incorrect one. Each hedgelet contract is
set so that investors must make a decision on
whether an economic event will occur or not occur.
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