Martingale Approach to the Pricing of European Style Contingent Claims
Abstract: This paper reviews the mathematical foundation of martingale theory to the pricing of contingent claims in financial markets. The martingale theory of the pricing of contingent claims in an ideal financial market is described within the context of the Europeans and Asian options markets.
Keywords: theory, Contingent claims, Ideal financial market, Europeans option, Asian option
How to Cite?: Godswill U. Achi, Okafor, J.U, "Martingale Approach to the Pricing of European Style Contingent Claims", Volume 2 Issue 1, January 2013, International Journal of Science and Research (IJSR), Pages: 636-642, https://www.ijsr.net/getabstract.php?paperid=IJSROFF130201015, DOI: https://dx.doi.org/10.21275/IJSROFF130201015