Arbitrage-Free Condition

Arbitrage-Free Condition

A situation in which all relevant assets are priced appropriately and there is no way for one's gains to outpace market gains without taking on more risk. Assuming an arbitrage-free condition is important in financial models, thought its existence is mainly theoretical.
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Content Outline: I CALCULUS 1 Set Theory 2 Linear Algebra 3 Sequences and Series 4 Differential Calculus 5 Integral Calculus 6 Remarkable Functions 7 Complex Numbers 8 Differential Equations 9 Transforms II PROBABILITY 10 Measure Theory 11 Probability Theory 12 Stochastic Calculus 13 Stochastic Differential Equations III FINANCE 14 Actuarial Calculus 15 Equity Derivatives Models - Asymptomatic analysis and Portfolio replication - Martingale and forward measures - Stochastic and Partial Differential Equation - Fourier Transform 16 Term-Structure models - Short rate diffusive processes - Arbitrage-free conditions - Stochastic and Partial Differential Equation - Zero Coupon Bond Price under different measures INDEX