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.

Ancestors (10)

  1. 29K
  2. Paper 2
  3. ii
  4. 2019
  5. Past exam of the mathematics course of the University of Cambridge
  6. Mathematics course of the University of Cambridge
  7. Course of the University of Cambridge
  8. University of Cambridge
  9. List of universities
  10. Home

View article source

Discussion (0)

New discussion

There are no discussions about this article yet.

Articles by others on the same topic (0)

There are currently no matching articles.
See all articles in the same topic Create my own version