The word numéraire refers to the unit of measurement used to value a portfolio of assets. Thechange of numéraire technique involves converting from one measurement to another. Theforeign exchange markets are natural settings for interpreting this technique (but are by no meansthe only...

The problem of pricing and hedging of contingent claims inincomplete markets has led to the development of various valuation methodologies. Thispaper examines the mean-variance approach to risk-minimisation and shows that it is robustunder the convergence from discrete- to continuous-time market...