Is price process of a risky asset a martingale
the risk-neutral measure and its connection to the price process as a martingale. in other words, is price process of a risky asset a martingale?
I wanted to discuss a fundamental concept in financial mathematics that interests you: the risk-neutral measure and its connection to the price process as a martingale. in other words, is price process of a risky asset a martingale?
The risk-neutral measure is a critical concept that allows us to price financial derivatives using a simplified assumption …
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