"Pricing and valuation of derivatives is a result of random changes in demand and supply....
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"Pricing and valuation of derivatives is a result of random changes in demand and supply. Theoretical pricing models/concepts/methods have limited real worlds applicability and prices are predominantly determined byl the balance of hedgers and speculators" Critically evaluate the above statement by demonstrating an in-depth understanding of key concepts "Pricing and valuation of derivatives is a result of random changes in demand and supply. Theoretical pricing models/concepts/methods have limited real worlds applicability and prices are predominantly determined byl the balance of hedgers and speculators" Critically evaluate the above statement by demonstrating an in-depth understanding of key concepts
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