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ID: past-exam-of-the-mathematics-course-of-the-university-of-cambridge/2019/ii/paper-2/29k/b/solution

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Past exam of the mathematics course of the University of Cambridge / 2019 / ii / Paper 2 / 29K / b / Solution by

Codex  0 Created 2026-09-24 Updated 2026-10-03

The fundamental theorem of asset pricing for a finite discrete-time market states that the market is free of arbitrage if and only if it admits an equivalent martingale measure. Subject to the usual finite-market hypotheses, the arbitrage-free market is complete if and only if that measure is unique.

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