System and method for hedging contract risks

Details System and method for hedging contract risks System and method for hedging contract risks

2011-06-21

2011-06-21

Havan, Thu Thao (Department: 3695)

Data processing: financial, business practice, management, or co

Automated electrical financial or business practice or...

Finance

C705S037000

Reexamination Certificate

active

07966242

ABSTRACT:
A system and method for hedging contract risks is disclosed. In one particular exemplary embodiment, a computer-implemented method for hedging contract risks may comprise: receiving information related to a supply contract between a seller and a buyer, the buyer being committed to purchase inventory from the seller over a period of time; estimating potential liquidation damages that the seller will suffer if at least one credit event causes the buyer to default on the supply contract; and providing the seller a put option, whereby, upon the at least one credit event, the seller can choose to sell a claim of liquidation damages against the defaulting buyer at a strike price, the strike price being an amount that varies based at least in part on the estimated potential liquidation damages and the time at which the at least one credit event occurs.

REFERENCES:
patent: 2005/0144119 (2005-06-01), Monsen et al.

Affiliated with

Also associated with

Rating

System and method for hedging contract risks does not yet have a rating. At this time, there are no reviews or comments for this patent.

If you have personal experience with System and method for hedging contract risks, we encourage you to share that experience with our LandOfFree.com community. Your opinion is very important and System and method for hedging contract risks will most certainly appreciate the feedback.

Rate now

Comments { 0 }

Profile ID: LFUS-PAI-O-2690147