The unit in which prices are measured. This may be a currency, but in real models, such as most trade models, the numeraire is usually one of the goods, whose price is then set at one. The numeraire can also be defined implicitly by, for example, the requirement that prices sum to some constant.
Related information about numeraire:
- Numéraire - Wikipedia, the free encyclopedia
"Changes of Numeraire, Changes of Probability Measures and Pricing of Options ". Journal of Applied Probability 32: 443–458. Damiano Brigo; Fabio Mercurio ...
- Numeraire Definition | Investopedia
A numeraire is usually applied to a single good, which becomes the base good. All similar goods are then valued and priced against the base good.
- Numeraire - Dictionary Definition of Numeraire
Numeraire Defined - A Dictionary Definition of Numeraire.
- What is numeraire? definition and meaning
Definition of numeraire: Economics: Commodity or good in terms of which all other prices are expressed, for example gold.
- Numeraire | Define Numeraire at Dictionary.com
a basic standard by which values are measured, as gold in the monetary system. Relevant Questions. What Is Numeraire? What Numeraire Under Fle.
- Global Value Investing with Economic Valuation
Intrinsic economic value of companies based on discounted cash flow from expected dividends or free cash flow to equity. Online calculator dubbed the Value ...
- Wilmott Forums - What is change of numeraire and why is it useful ...
to me the intuitive idea behind a numeraire is (as Shreve said) ... using beta = exp(r t) the cash money-market-account numeraire, posing S*=S/ ...
- 3. Girsanov, numeraires, and all that
Feb 11, 2008 ... we will discuss the technique of change of numeraire, which will play a ... A key concept in modern asset pricing theory is that of a numeraire.