Summary:
The textbook "The Mathematics of Financial Derivatives: A Student Introduction" by Paul Wilmott, Sam Howison, and Jeff Dewynne (Amazon affiliate link) is a standard introductory text, and describes arbitrage in the following fashion.This [arbitrage] can be loosely stated as "there is no such thing as a free lunch." More formally, in financial terms, there are never any opportunities to make an instantaneous risk-free profit. (More correctly, such opportunities cannot exist for a significant length of time before prices move to eliminate them.)...Bond EconomicsArbitrage In Practice And TheoryBrian Romanchuk
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The textbook "The Mathematics of Financial Derivatives: A Student Introduction" by Paul Wilmott, Sam Howison, and Jeff Dewynne (Amazon affiliate link) is a standard introductory text, and describes arbitrage in the following fashion.This [arbitrage] can be loosely stated as "there is no such thing as a free lunch." More formally, in financial terms, there are never any opportunities to make an instantaneous risk-free profit. (More correctly, such opportunities cannot exist for a significant length of time before prices move to eliminate them.)...Bond EconomicsArbitrage In Practice And TheoryBrian Romanchuk
Topics:
Mike Norman considers the following as important:
This could be interesting, too:
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The textbook "The Mathematics of Financial Derivatives: A Student Introduction" by Paul Wilmott, Sam Howison, and Jeff Dewynne (Amazon affiliate link) is a standard introductory text, and describes arbitrage in the following fashion.Bond EconomicsThis [arbitrage] can be loosely stated as "there is no such thing as a free lunch." More formally, in financial terms, there are never any opportunities to make an instantaneous risk-free profit. (More correctly, such opportunities cannot exist for a significant length of time before prices move to eliminate them.)...
Arbitrage In Practice And Theory
Brian Romanchuk