Risk glossary

 

Q-measure

Also known as the risk-neutral measure, Q-measure is a way of measuring probability such that the current value of a financial asset is the sum of the expected future payoffs discounted at the risk-free rate. The risk-free rate is the return on investment on a riskless asset. Q-measure is used in the pricing of financial derivatives under the assumption that the market is free of arbitrage.

Click here for articles on Q-measure. 

  • LinkedIn  
  • Save this article
  • Print this page  

You need to sign in to use this feature. If you don’t have a Risk.net account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an individual account here