Arbitrage and SDEs
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.
KeywordsStock Price Strike Price Arbitrage Opportunity Dividend Policy Forward Contract
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