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by Rotscher
January 27th, 2004, 10:10 am
Forum: The Quantitative Finance FAQs Project
Topic: What is change of numeraire and why is it useful in finance?
Replies: 13
Views: 242364

What is change of numeraire and why is it useful in finance?

I heard that the valuation of a put option derived from a chance of numeraire of a call option is another application of the change of numeraire. Can somebody explain this to me? Thanks!
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