Question
Describe a risk-neutral world. What is the difference between the valuation of a derivative using a risk-neutral measure and using a real-world measure? How would
Describe a risk-neutral world. What is the difference between the valuation of a derivative using a risk-neutral measure and using a real-world measure? How would you suggest to compute a real-world measure for the derivative?
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Finance for Executives Managing for Value Creation
Authors: Gabriel Hawawini, Claude Viallet
4th edition
9781133169949, 538751347, 978-0538751346
