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What is the difference between probability & risk neutralprobability?

  1. Jun 25, 2013 #1
    Are both same or different? Can someone give me some example to understand?

    Thanks in advance
     
  2. jcsd
  3. Jun 25, 2013 #2

    MarneMath

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    Education Advisor

    Well, probability is a board overarching term, while risk neutral probability is specific measure that tends to occur when talking about a free arbitrage market.
     
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