English Abstract: Risk-neutral valuation is the foundation of modern derivative pricing theory. However, Chinese … textbooks do not clarify the fact that no-arbitrage conditions implies the existence of risk-neutral probability. This paper … demonstrates the core of the risk-neutral valuation - the fundamental theorem of asset pricing. Although there has been mature …

complete markets, which is equivalent to the unique existence of a risk-neutral measure. A single-period binomial-tree model …-free markets is a necessary condition for the legitimacy of risk-neutral pricing, and that a condition of complete markets is for … the uniqueness of a risk-neutral measure. The objective of this paper is to provide an intuitive interpretation of …

existing regulations and improper measures taken by the authority, investors are exposed to both interest loss and credit risk …