Asset 1: Asymmetric Power Put 1 Formula: H1 = max (X =96 S12^T, 0) X = 2; T = 0.1 to 5

Asset 2: unidentified

This example shows why PAT is an invaluable tool for identifying financially equivalent payoffs of exotic options with non-linear payoffs. Although we can't always identify the shapes of financially equivalent payoffs on the opposite side of the market as something widely known and tradable, it is clear that for the sake of both risk management and trading purposes, being able to quickly and accurately identify financially equivalent counterparts is essential. For traders, this could be used to detect and avoid entering arbitrage positions which, after research, turn out to be very risky non-arbitrage positions instead. For risk-management professionals, this technology could help them avoid taking positions which, after careful analysis, turn out to not be effective hedge positions at all.