Questions tagged [equivalent-measure]

The tag has no usage guidance.

Filter by
Sorted by
Tagged with
2
votes
1answer
78 views
+50

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 ...
0
votes
0answers
25 views

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. ...