No arbitrage conditions: Difference between revisions
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imported>Doug Williamson m (Spacing 21/8/13) |
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The usually assumed or expected situation in transparent financial markets, where pricing discrepancies between related markets have been eliminated. | The usually assumed or expected situation in transparent financial markets, where pricing discrepancies between related markets have been eliminated. | ||
So there are no remaining arbitrage opportunities at current market prices. | So there are no remaining arbitrage opportunities at current market prices. | ||
Many price and value calculations are based on ‘no arbitrage’ assumptions. | Many price and value calculations are based on ‘no arbitrage’ assumptions. | ||
== See also == | == See also == | ||
* [[Arbitrage]] | * [[Arbitrage]] | ||
* [[Free lunch]] | * [[Free lunch]] | ||
Revision as of 15:34, 21 August 2013
The usually assumed or expected situation in transparent financial markets, where pricing discrepancies between related markets have been eliminated.
So there are no remaining arbitrage opportunities at current market prices.
Many price and value calculations are based on ‘no arbitrage’ assumptions.
