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Arbitrage-Free Condition
(redirected from No-Arbitrage Condition)

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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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3) The last section discusses how to translate the no-arbitrage condition for bond prices into a no-arbitrage condition for yields.
Forces That Shape the Yield Curve by FISHER, MARK / Economic Review (Atlanta, Ga.)
The no-arbitrage condition for a foreign asset with an income of X*(s) and its domestic perfect substitute yielding X*(s)e(s) is [summation of] X*(s) ([e.
Currency swaps, financial arbitrage, and default risk by Usmen, Nilufer / Financial Management
To overcome problems in earlier studies, this study tests theoretical pricing relationships based on no-arbitrage conditions for European stock index options.
Evidence on the Efficiency of Index Options Markets by ACKERT, LUCY F.; TIAN, YISONG S. / Economic Review (Atlanta, Ga.)
 
 
 
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