Risk-neutral measure

Related lectures (32)

Explores asset pricing theory, market efficiency, risk-return relationship, and the efficient frontier.

Explores self-financing strategies, asset pricing theorems, and arbitrage opportunities in financial markets.

Covers derivatives pricing, replication, and interpretation, including examples of call options, forward contracts, and put options.

Covers challenges in credit risk and pricing of credit derivatives.

Explores the tradeoff between risk and return in portfolios, the benefits of diversification, and the impact of correlation on portfolio risk.

Explores the Capital Asset Pricing Model, covering risk-return trade-off, SML, betas estimation, and applications in finance.

Covers financial valuation models, risk-return trade-off, firm analysis, and financing decisions.

Explores risk-neutral valuation for traded securities, derivatives, hedging, bond pricing, and forward contracts in financial markets.

Explores martingales, Brownian motion, and measure transformations in probability theory.

Explores applications of Markov models in finance, focusing on pricing derivatives and risk-neutralization.

Covers linear response, steady states, Girsanov transforms, and covariance limits in reversible diffusions.

Explores martingale-based linear response, complex diffusivity, and Nyquist relation in stochastic systems with time-dependent perturbation.

Page 2 of 2