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Questions tagged [arbitrage]

The simultaneous buying and selling of securities, currencies, or commodities in different markets in order to take advantage of differing prices for the same asset.

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Fundamental Theorem of Asset Pricing (Linear Algebra)

I saw this question in a textbook that I was recently reading and don't really know how to aprpoach this problem. Let $H$ be a finite dimensional vector space with inner product ($\cdotp$, $\cdotp$)....
Arthur L's user avatar
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Need help with Wakker (2010) on arbitrage

In Prospect Theory (2010; Cambridge UP), Peter P. Wakker has an exercise assignment 3.3.6 without solution in the book and I'm really unsure about this one. The exercise states on pages 76-77: ...
Eric '3ToedSloth''s user avatar
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Seeking a Detailed Explanation on an Arbitrage Issue Involving Debt – Assistance Requested

I have a question about part (b). I usually understand arbitrage issues (buy low, sell high). However, I completely don’t understand the detailed solution for this problem, and I’m also unsure why one ...
Duck D's user avatar
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