Abstract
The classical result by Dalang–Morton–Willinger, usually abbreviated as DMW and sometimes referred to as the Fundamental Theory of Asset (or Arbitrage) Pricing (FTAP) for the discrete finite-time model of a frictionless financial market, says:
There is no arbitrage if and only if there is an equivalent martingale measure.
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© 2009 Springer-Verlag Berlin Heidelberg
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Kabanov, Y., Safarian, M. (2009). Arbitrage Theory for Frictionless Markets. In: Markets with Transaction Costs. Springer Finance. Springer, Berlin, Heidelberg. https://doi.org/10.1007/978-3-540-68121-2_2
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DOI: https://doi.org/10.1007/978-3-540-68121-2_2
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Print ISBN: 978-3-540-68120-5
Online ISBN: 978-3-540-68121-2
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