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European Contracts It's a really important question and as @noob2 commented, the FTAP is normally applied to European-style derivatives, even if they are (strongly) path-dependent, including barrier options and Asian options. The idea is always the same, $V_t=B_t\mathbb{E}^\mathbb{Q}\left[\frac{\xi_T}{B_T}\Big|\mathcal{F}_t\right]$, that is the derivative's ...


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