Can anyone explain the intuition behind this?
The First Fundamental Theorem of Asset Pricing: A discrete market, on a discrete probability space is arbitrage-free if, and only if, there exists at least one risk neutral probability measure that is equivalent to the original probability measure, P.
The First Fundamental Theorem of Asset Pricing: A discrete market, on a discrete probability space is arbitrage-free if, and only if, there exists at least one risk neutral probability measure that is equivalent to the original probability measure, P.
