On martingale measures and pricing for continuous bond-stock market with
stochastic bond
On martingale measures and pricing for continuous bond-stock market with
stochastic bond
This papers addresses the stock option pricing problem in a continuous time market model where there are two stochastic tradable assets, and one of them is selected as a num\'eraire. It is shown that the presence of arbitrarily small stochastic deviations in the evolution of the num\'eraire process causes significant …