Arbitrage and universal pricing
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David G. Luenberger
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Article
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2002
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Elsevier Science
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English
β 146 KB
This paper considers two methods for pricing assets and examines the relations between them. The ΓΏrst method is based on the principle of no-arbitrage, which asserts that introduction of the new asset should not create an arbitrage in a market that was before arbitrage free. This condition is satisΓΏ