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Today's tutorial discusses Mar graas formula and its use in quantitative finance. It demonstrates how to use numerar by changing the measure, unlike in Black-Scholes. Instead of choosing a risk-free asset as the numerator, a share is chosen. The tutorial explains the payoff of an exchange option, allowing the exchange of one share for another. If the share exchanged for is more valuable at maturity, the difference is gained. This is a call option that exchanges assets with no dividends.
