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Tag: martingale

What is the risk-neutral measure?

Here is a short list of the most common 'big-concept' questions that I was asked throughout my years as a quant (whether coming from people on the trading floor, in control functions, or from newcomers to the team), in no particular order: What is the risk-neutral measure? What is arbitrage-free pricing? What is a change … Continue reading What is the risk-neutral measure? →

Robert Finance, Mathematics 20 Comments January 24, 2012January 24, 2012
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