| 摘要 |
The invention embodies a system and method of underwriting price risk with an insured window contract. The system and method has application in any marketplace where there is a transparent price that exhibits volatility over time. It is applicable to both buyers and sellers facing price risk in the marketplace. A window is established for the contract period which specifies upper and lower price bounds. Market prices outside the window result in a deposit to or withdrawl from an account owned by the participant in the insured window contract. The contingent account may be an actual account in a financial institution (a contingent account) or a virtual account used simply to determine net balance (a balance account). Surpluses or deficits accrue in the account over the duration of the contract. At contract expiry, deficits in such accounts, when they occur, are indemnified by a claim.
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