Complex sentence: The concept of Arrow-Debreu security is a very nice pedagogical tool to understand pricing and hedging issues in derivatives analysis.It's practical use however in financial engineering has turned out to be very limited, especially in the multi-period or continuous markets.
Split into simpler sentences: The concept of Arrow-Debreu security is a good pedagogical tool to understand pricing and hedging issues in derivatives analysis. Its practical use however in financial engineering has turned out to be very limited, especially in the multi-period or continuous markets.