Complete market Created 2026-09-24 Updated 2026-10-03
A complete market is a financial market in which every contingent claim in the chosen class can be replicated by an admissible self-financing portfolio. In an arbitrage-free finite market, completeness is equivalent to uniqueness of the equivalent martingale measure.
Discount factor 2026-10-06
A multiplicative factor converting a value into units of a chosen initial account. With the continuous-time bank account , ; discounted traded asset prices are martingales under the corresponding equivalent martingale measure.
Martingale deflator Created 2026-09-24 Updated 2026-09-29
A martingale deflator is a strictly positive adapted process whose product with each cum-dividend asset gain is a local martingale. After normalization by a numéraire, a martingale deflator determines an equivalent martingale measure.