A forward measure is the martingale measure associated with taking a zero-coupon bond as numéraire. Prices divided by that bond are martingales under the corresponding measure.
"Forward measure" is a concept used in financial mathematics and quantitative finance, particularly in the context of modeling and pricing derivatives. It generally refers to a particular probability measure under which certain processes, like asset prices or tradeable instruments, exhibit specific properties over time. In mathematical finance, different measures are used to analyze stochastic processes, especially when it comes to pricing options and other derivatives.
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