Questions tagged [equivalent-measure]
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Market Price of Risk for Consumption Asset - Hull's Example 28.1
In Hull's Options, Futures, and Other Derivatives, he gives an example 28.1 as below.
Consider a derivative whose price is positively related to the price
of oil and depends on no other ...
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Always make a discounted price integrable
In the book "Fundamentals and advanced techniques in derivatives hedging" of Bouchard and Chassagneux, in the discrete time modeling, it is written that we can always make price processes integrable. ...
