3DM2: The Agoras Derivatives Market💎 #shorts #agoras #derivativesmarket #tauchain

Another market is derivatives market, forward contracts, put in, call options which are very important in order to stabilize an economy and another aspect it will give is the ability to have a risk free interest for the proceeds without printing new money. Currently when you deposit money in the bank, the bank deposit it to a central bank, and a central bank gives interest by printing new money, and this deludes the whole economy. But on Agoras, certain players will have hedging needs, exchanges will have hedging needs, miners, computational resources, users will not only want to hedge themselves against fluctuations the currency rate, it is known from Black and Scholes Theory that a hedging market can be used to recover the alternative cost of money. If I deposit money as being another side of a hedging contract, then the entity who buys the hedge need to pay me not only for the risk but also for locking the money, the alternative cost. And the risk can be eliminated using another more sophisticated, which out of our scope, combination of contrast. This is in detail on the Black and Scholes Theory including the strategy of recovering the risk free interest out of derivatives market.

#Agoras #derivatives #economy #hedging #BlackAndScholes #market #finance #riskmanagement #computationalresources #forwardcontracts #options #putoptions #calloptions #futures #trading #investing #money #alternativecost #interestrates #centralbank #printingmoney

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