No arbitrage conditions

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.

See also

• Arbitrage
• Carry trade
• Dislocation
• Efficient market hypothesis
• Forward yield
• Free lunch
• International Fisher Effect
• Interest rate parity
• No free lunch
• Par yield
• Zero coupon yield