measure, describing the stochastic dynamics of the state of the market, and an equivalent martingale measure determining … prices of contingent claims. The relation between equivalent martingale measure, state prices, market price of risk and the …

markets ; martingale measure ; generalized self-financing strategy ; attainability ; self-financing in mean …The paper focuses on the problem of pricing and hedging a European contingent claim for an incomplete market model, in … function is evaluated using the martingale approach. The equivalent martingale measure is introduced in a way that the Markov …