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To price a position or portfolio at prices determined by using a financial model to interpolate between or among the market prices readily available. A mark to model is less reliable than a mark to market because it depends on the realism of the assumptions in the model and may attribute a degree of liquidity to the instruments being priced which may not be present. With many complex financial instruments where no ready market is available, a mark to model is the only practical valuation technique available.
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