Выражение встречается в следующем контексте:

The system incorporates the risks associated with explicit option contracts and embedded options in host instruments by performing full arbitrage-free valuations and revaluations of each financial instrument with optionality in the bank’s portfolio. The system can model risk factor components associated with option volatilities so that the effects of changes in the price or rate volatility of the underlying assets can be incorporated into the analysis.

Заранее спасибо