Indexed Derivatives

Inflation-indexed derivatives, also known as inflation-linked derivatives or inflation derivatives, have become widely traded instruments in the capital markets in a relatively short space of time. They are traded generally by the same desks in investment banks that trade inflation-linked sovereign bonds, which use these instruments for hedging as well as to meet the requirements of clients such as hedge funds, pension funds, and corporates. They are a natural development of the inflation-linked bond market. 

Inflation derivatives are an additional means by which market participants can have an exposure to inflation-linked cash flows. They can also improve market liquidity in inflation-linked products, as an earlier generation of derivatives did for interest-rates and credit risk. As flexible OTS products, inflation derivatives offer advantages over cash products in certain circumstances. They provide  

We describe first some common inflation derivatives, before considering some uses for hedging and other purposes. We then consider IL derivatives pricing. 

Inflation-Linked Bond Swap, This is also known as a synthetic index-linked bond. It is a swap with the following two cash flow legs  

This converts existing conventional fixed- or floating-rate investments into inflation-linked investments. An example of such a swap follows. 

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Figure 9.3 Mass spectra of four different E. coli strains (a) AD4, (b) DH5, (c) LE3, and (d) Y10. Composite correlation indexes derived by comparing these spectra to one another are listed in Table 9.1.

The interstellar extinction has a great effect on distance determination for stars. The B/V index derived in Chapter 2 will be distorted by the presence of interstellar dust, with an amount of radiation in the blue part of the spectrum removed. The difference between the observed colour index and the colour index on which it should have based its temperature is called the colour excess. We defined m to be the measured apparent magnitude, which must now be corrected by an amount Av and added to the distance modulus equation ... 

The temperature index, derived from long-term oven-ageing test programmes, is the maximum temperature that causes a 50% decay of the studied characteristics in the very long term. The UL temperature index depends on ... 

Viability as measured by Ernst Young Survival Index, derived from the skew analysis. The estimates are expressed as the number of years of cash that companies have on hand based on current spending levels and on fiscal year-end numbers. 

Figure 13.5. Relationship between therapeutic index, derived from concentration-response curves (panel A), and time course of plasma drug concentration after intravenous (IV) and subcutaneous (SC) administration. Note that IV dosing of a drug exposes patients to excessive and fleeting plasma drug concentrations the problem is much less pronounced with SC dosing.

The general objective, principle, and scope of application of the pT-method are succinctly described in Section 1 and also reported elsewhere in this book (see Chapter 3 of this volume, Section 5.1), where readers will appreciate that this hazard assessment scheme is adaptable to both liquid and solid media. Briefly recalled here in the context of solid-media samples such as dredged material, the pT-value, which relates to a single bioassay, and the pT-index, derived from the most sensitive organism in a test battery, permit a numerical classification of environmental samples on the basis of ecotoxicological principles. Sediment from any aquatic ecosystem (freshwater, brackish, marine) and from any of its phases (whole sediment, porewaters, elutriates or organic extracts) can be appraised provided that the proper standardized toxicity tests are available. There are whole-sediment test protocols standardized for many agencies (e.g., Environment Canada, ASTM). 

Table IV shows a comparison of indexes derived from various test reactions. It is clear that Cl and Cl can not discriminate well between 12-membered ring molecular sieves while SI can. It is not clear at this time whether the SI will continue to increase in magnitude with larger pore materials. Also, as previously mentioned, the use of a bifunctional reaction may prove difficult for testing materials with low stability. This point may not be as important as we initially believed since we recently have shown that platinum can be impregnated into VPI-5 and n-hexane reacted at temperature as high as 800 K. The ratio 1,3,5/1,2,4-TIPB does increase with increasing pore/void size and does reveal a difference between 10-13 A sized microporous materials and the mesoporous SiO2-Al203. Thus, with further refinements this ratio may prove useful for characterizing larger pore molecular sieves.

Yokoyama and coworkers investigated the discolouration of titanylphthalocyanine 60, and related porphyrins by silyl radicals derived from methylphenylpolysilane by molecular orbital methods60. Calculated values of AN, the index derived from the hard and soft acids and bases concept was determined from HF/3-21G calculated ionization potentials, electron affinities, and HOMO and LUMO orbital energies of the systems of interest. These studies predict that PhMe2Si should donate an electron readily to 60 to form 60 (equation 18). This prediction is of direct relevance to observations that irradiation of titanylphthalocyanine-coated methylphenylpolysilane films leads to discolouration of the film60. 

The net effect of inserting the complex refractive index, derived from the damped oscillation of the electrons, is that the plane wave traveling through a material with refractive index n — ik undergoes attenuation as shown in Figure 9.10. Hence the material is... 

Compound Boiling point (°C) Refractive index Derivative Melting point (°C) Ref. 

Sader, S. A., R. B. Waide, W. T. Lawrence, and A. T. Joyce. 1989. Tropical forest biomass and successional age class relationships to a vegetation index derived from Landsat TM data." Remote Sensing Environmental 28 143-156. 

Other encountered graphical bond order descriptors are the /V/ index, the W AV index, the WW AVW index, the J7J index, the CID7CID index, and the - Z7Z index derived, respectively, from the - Randic connectivity index, the -> Wiener index, the - hyper-Wiener index, the - Balaban distance connectivity index, the - Randic connectivity ID number, and the Hosoya Z index. 

For acyclic graphs the hyper-distance-path index Dp coincides with the - hyper-Wiener index WW derived from the - Wiener matrix and with the -> hyper-detour index derived from the detour-path matrix. Moreover, it was proposed as an extension of the hyper-Wiener index for any graph [Klein et al., 1995],... 

More interesting is the -> edge-type Schultz index derived from both the edge distance matrix and the edge adjacency matrix. 

A topological polarity index derived by the electrotopological atoms in the molecule and defined as ... 

Index, derived from the -> adjacency matrix A, the - distance matrix D and the A-dimensional column vector v constituted by the vertex degree b of the A atoms in the -> H-depleted molecular graph [Schultz, 1989]. The Schultz index is defined as ... 

We can extend these considerations to fractional derivatives by means of analogy. We define a real indexed derivative of a monomial t ... 

The 3D Balaban index, denoted as is a Balaban-like index derived from the geometry matrix G as [Mihalic, Nikolic et al., 1992]... 

This is a retention index derived from thin-layer and paper chromatography defined as [Bate-Smith and Westall, 1950]... 

Detour-path matrix and detour-delta matrix for the H-depleted molecular graph of ethylbenzene tutu is the hyperdetour index and W/(Aa) is the Wiener-type index derived from the detour-delta matrix. 

A Wiener type index derived from this matrix is the A/D index defined as... 

For example, in 2-methylpentane, the Rouvray index, derived from distance values, is /rouv = 10 xl + 10x2 + 6x3 + 4x4 = 64or, alternatively, derived from distance degrees, is fRouv =12 + 8 + 8 + 10 + 14 + 12 = 64. 

Wiener-type index derived from this matrix. 

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