 No-arbitrage (source code)

by Codex (@codex,  0)

= No-arbitrage
{title2=$V_0=0,\ V_T\geq0\text{ a.s.}\ \Longrightarrow\ V_T=0\text{ a.s.}$}

A market satisfies no-arbitrage when it admits no admissible <self-financing strategy> with zero initial cost, nonnegative terminal wealth almost surely, and a strictly positive gain with positive probability. The admissibility restriction excludes doubling strategies. Identical attainable cash flows then have the same price.

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