In this article, we focus on how these products can be priced in a consistent way and discuss under which assumptions (e.g., regarding a liquid underlying market) risk-neutral
valuation can be used.
Not focusing on risks means those who are "risk-neutral
" did not pass along their genes, to the advantage of those who were "risk-sensitive."
On the other hand however, the market implied risk-neutral
sovereign probability of default stands quite low.
In the model, the economy is composed of two kinds of firms, risk-neutral
It constructs a risk-neutral
portfolio [PI] composed of the option and the opposite transaction of a certain amount of underlying asset S assuming that the expected return of the underlying asset is a risk-free rate .
If, in the agency's opinion the amendment is risk-neutral
from a rating perspective, Fitch may decline to comment.
Uncertainty over irreversible consequences warrants abandonment of risk-neutral
investment policies in the public sector [Arrow & Fisher, 1974].
In most option pricing models, the fair price is determined from the expected value of its cash flow, under a risk-neutral
probability (measure Q), and discounted by a risk-free rate.
 use another classification for pricing temperature-based derivatives and add actuarial pricing and extended risk-neutral
valuation in addition to equilibrium asset pricing, where the former is based on Jewson and Brix  and the latter on Hull  and Turvey .
Then, there exists an equivalent martingale measure, Q-measure, which is known as the risk-neutral
measure; see extended Girsanov-type measure transformation in .
Zhang, "Cross-sectional analysis of risk-neutral
skewness," Journal of Derivatives, vol.