Abstract: This invention creates commoditized insurance products and a physical marketplace that streamlines the process of insurance. It does it by: 1. Standardizing of insurance and cost-sharing plans that enables them to be listed on regulated exchange(s) and by utilizing central clearing-house with extended functionality that includes insurance administration. This minimizes the overall administration costs, minimizes actuarial insurance and other risks (risks are latent costs), and thus makes the process most efficient. 2. Creating supporting structures that enable exchange trading and central clearing of insurance products. These structures include expanded functionality of exchange's order-matching engine, added functionality of insurance administration to the central clearing-house, creating a system of the separate buyers, sellers, and backup pools allowing the proper handling of the payment mechanisms, and process of creating fair final settlement prices. 3.

Abstract: Systems, methods and computer instructions for creating and/or determining the present value of currency strength indexes are provided. Certain methods of using a computer to create a currency index include: selecting a basis currency; selecting a plurality of non-basis currencies; assigning an allocation to each non-basis currency; and making an investment transaction for each non-basis currency based at least in part on the allocation. In certain methods, the investment transaction includes selling an amount of each non-basis currency against the basis currency. In certain methods, the investment transaction includes buying an amount of each non-basis currency against the basis currency. Certain methods include determining the present value of the currency index.

Abstract: A method and computer apparatus determines the value of a derivative by introducing risk premiums. The method includes determining the underlying security and derivative, determining the risks and trading costs associated with the derivative, formulating the RAP equation for the derivative, solving the RAP equation for the derivative and outputting a value of the derivative based on the solution of the RAP equation. The computer apparatus employs this method in a financial analysis application. The system includes an input unit for taking inputs of derivative characteristics and model parameters, a processing unit for computing a value of the derivative based on the input characteristics and parameters using a risk-adjusted pricing equation, and an output unit for displaying the value of the derivative.