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Well I guess I have not made the question clear.The traditional argument equates a risk-neutral measure to an equivalent martingale measure (EMM).But I doubt if a debt or bond asset is unnecessary in construction of equivalent martingale measure.Traditional arguments require at least one asset to be deterministic where as other assets stochastic, like a bond and a stock.But I wonder if EMM still holds when all of assets are stochastic?
Well I guess I have not made the question clear.
The traditional argument equates a risk-neutral measure to an equivalent martingale measure (EMM).
But I doubt if a debt or bond asset is unnecessary in construction of equivalent martingale measure.
Traditional arguments require at least one asset to be deterministic where as other assets stochastic, like a bond and a stock.
But I wonder if EMM still holds when all of assets are stochastic?
