Risk-Neutral Probabilities Are Also Known as All of the Following,EXCEPT

question 36

Multiple Choice

Risk-neutral probabilities are also known as all of the following,EXCEPT:

• A)contingent probabilities.
• B)state-contingent prices.
• C)martingale prices.
• D)state prices.

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Definitions:

Central Bank

The national financial institution that oversees the monetary system of a country, controlling interest rates and currency supply.

Scarce Supply

Refers to the condition where the availability of a particular good or resource is insufficient to meet the demands.

Market System

An economic system where prices and the distribution of goods and services are determined by competition in a free market.

Private Ownership

Refers to the goods or assets that are owned by individuals or corporations rather than by the government or the public.