Solution

Past exam of the mathematics course of the University of Cambridge / 2004 / iii / Paper 34 / 2 / Solution

Past exam of the mathematics course of the University of Cambridge / 2004 / iii / Paper 35 / 3 / d / Solution

Past exam of the mathematics course of the University of Cambridge / 2005 / iii / Paper 35 / 1 / Solution

Past exam of the mathematics course of the University of Cambridge / 2005 / ii / Paper 3 / 27J / b / Solution

Past exam of the mathematics course of the University of Cambridge / 2006 / iii / Paper 39 / 1 / Solution

Past exam of the mathematics course of the University of Cambridge / 2006 / iii / Paper 39 / 2 / Solution

Past exam of the mathematics course of the University of Cambridge / 2006 / ii / Paper 2 / 28I / a / Solution

Past exam of the mathematics course of the University of Cambridge / 2006 / ii / Paper 2 / 28I / b / Solution

Past exam of the mathematics course of the University of Cambridge / 2007 / iii / Paper 42 / 1 / Solution

{wiki=Equivalent_martingale_measure}

= Risk-neutral measure
{synonym}

An equivalent martingale measure is a probability measure equivalent to the physical measure under which discounted asset prices are martingales. In a finite one-period market, its existence is equivalent to no arbitrage.


Equivalent martingale measure

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