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Explain the assumptions in the valuation of derivatives.
Social Arrangements
The structured ways in which society is organized, including institutions, hierarchies, and social relationships.
Geographic Location
Refers to a specific physical point on Earth's surface as defined by a set of coordinates, or a description like an address.
Globalization
The process of increasing interconnectivity and interdependence of the world's markets and businesses, facilitated by advances in communication and transportation technology.
Economic Integration
A process by which countries reduce trade barriers to enable more free flow of goods, services, and capital among each other, leading to increased economic interdependence.
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