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System and method for creating and trading a digital derivative investment instrument

  • US 20060253355A1
  • Filed: 05/04/2005
  • Published: 11/09/2006
  • Est. Priority Date: 05/04/2005
  • Status: Abandoned Application
First Claim
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1. A method of creating a financial instrument comprising:

  • identifying a variable that will assume one of a first state and a second state at a designated time;

    establishing a contract between a first investor and a second investor in which the first investor agrees to pay a futures price to the second investor and the second investor agrees to pay to the first investor one of a first settlement amount and a second settlement amount, depending on whether the variable has assumed the first state or the second state;

    determining which of the first state and the second state the variable has assumed at the designated time; and

    settling the contract according to the state assumed by the variable.

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