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MILES


It stands for Mexican Index-linked Euro Security, a nonstandard American call option on the dollar value of the Mexican stock index, the Bolsa Mexicana de Valores. This option comes with a cap provision and has a restricted exercise period that is shorter than the entire life of the option. The underlying is an index of dividend-paying stock.



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Derivatives have increasingly become very important tools in finance over the last three decades. Many different types of derivatives are now traded actively on ...
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