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Arbitrage and SDEs

  • J. Michael Steele
Part of the Applications of Mathematics book series (SMAP, volume 45)

Abstract

The heart of the modern financial aspirant never beats so quickly as in the presence of an arbitrage opportunity, a circumstance where the simultaneous purchase and sale of related securities is guaranteed to produce a riskless profit. Such opportunities may be thought of as rare, but on a worldwide basis they are a daily occurrence, although perhaps not quite as riskless as one might hope.

Keywords

Stock Price Strike Price Arbitrage Opportunity Dividend Policy Forward Contract 
These keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.

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Copyright information

© Springer-Verlag New York, Inc. 2001

Authors and Affiliations

  • J. Michael Steele
    • 1
  1. 1.The Wharton School, Department of StatisticsUniversity of PennsylvaniaPhiladelphiaUSA

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