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The Notion of Arbitrage and Free Lunch in Mathematical Finance

  • Walter Schachermayer

We shall explain the concepts alluded to in the title in economic as well as in mathematical terms. These notions play a fundamental role in the modern theory of mathematical finance. We start by presenting the ideas in a very informal style and then gradually raise the level of mathematical formalisation.

Keywords

Asset Price Option Price Trading Strategy Fundamental Theorem Contingent Claim 
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Copyright information

© Springer-Verlag Berlin Heidelberg 2008

Authors and Affiliations

  • Walter Schachermayer
    • 1
  1. 1.Financial and Actuarial MathematicsVienna University of TechnologyAustria

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