Q-MEASURE

Also known as the risk-neutral measure, Q-measure is a way of measuring probability such that the current value of a financial asset is the sum of the expected future payoffs discounted at the risk-free rate. The risk-free rate is the return on investment on a riskless asset. Q-measure is used in the pricing of financial derivatives under the assumption that the market is free of arbitrage.


Deixe um comentário

O seu endereço de e-mail não será publicado. Campos obrigatórios são marcados com *

Compartilhe este post: