Arbitrage-Free Condition
(redirected from No Arbitrage Conditions)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.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved