Abstract
It is generally accepted that state variables of financial instruments will disallow the existence of investment strategies with riskless profit, commonly referred to as an arbitrage opportunity. Such a belief is based on the assumption that investment agents will actively seek to exploit any arbitrage opportunity in financial markets. In turn, such acts will deplete any arbitrage opportunity as soon as it may arise.
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Cai, Mc., Deng, X. (2008). Complexity of Exchange Markets. In: Seese, D., Weinhardt, C., Schlottmann, F. (eds) Handbook on Information Technology in Finance. International Handbooks Information System. Springer, Berlin, Heidelberg. https://doi.org/10.1007/978-3-540-49487-4_28
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DOI: https://doi.org/10.1007/978-3-540-49487-4_28
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