No arbitrage conditions: Difference between revisions
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imported>Doug Williamson (Add link.) |
imported>Doug Williamson (Add link.) |
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* [[Free lunch]] | * [[Free lunch]] | ||
* [[Forward yield]] | * [[Forward yield]] | ||
* [[No free lunch]] | |||
* [[Zero coupon yield]] | * [[Zero coupon yield]] | ||
* [[Par yield]] | * [[Par yield]] | ||
* [[Interest rate parity]] | * [[Interest rate parity]] | ||
Revision as of 11:59, 1 November 2016
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.
