easy · Quantitative Finance

Which of the following is a key requirement for a measure Q to be considered an Equivalent Martingale Measure (EMM)?

1. It must be the only possible measure where the drift is r
2. The measure must assign a probability of 1 to the most likely event
3. It must be derived from the median return of the asset
4. The discounted price process must be a martingale under Q

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