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Question on Loot Drops... Predetermined?

#1
Are the loot drops on a monster or chest set when they spawn or... are they determined when that monster is killed or chest picked and opened?

I'm thinking it has to be when they are killed/opened as that's kind of the point of Fortune gear correct (enhance loot drops)?

If so, in a group play/party situation... let's say 4 players and just 1 of those players has Fortune gear.. does the Fortune gear bonus impact all the kills made by the party?