NetVendor's ability to allow a supplier to interact in both environments simultaneously creates a frictionless market
for the sale of principal and surplus products.
Theorem 4 Second Reason for Tax Arbitrage: Assume a frictionless market with taxation and a level of interest rate that is positive and the same for all terms.
Theorem 2 In a frictionless market with taxation and a flat term structure of interest rates, there is an upper bound for the annuity price for an x-year-old individual, below which a mortality swap will not admit tax arbitrage.
Theorem 3 First Reason for Tax Arbitrage: Assume a frictionless market with taxation and a flat term structure of interest rates.
In a frictionless market, the individual would be indifferent between a mortality swap and a bank deposit.
The article is organized as follows: the next section analyzes a mortality swap in a frictionless market.
The cloud has created a frictionless market
for us to deliver high value services at an affordable price point.
Henry Cao, University of North Carolina, and Hui Ou-Yang, Duke University, "Bubbles and Panics in a Frictionless Market
with Heterogeneous Expectations"
The Internet has opened up the possibility of frictionless markets
where groups and individuals can leverage their buying and selling power across large communities of interest," said Tom Glassanos, president of the eBusiness Solutions Division at PeopleSoft.
Objective: For the past twenty years, Mathematical Finance has grown from the perfect fit between martingale methods and models of frictionless markets