We shall explain the concepts alluded to in the title in economic as well as in mathematical terms. These notions play a fundamental role in the modern theory of mathematical finance. We start by presenting the ideas in a very informal style and then gradually raise the level of mathematical formalisation.
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Schachermayer, W. (2008). The Notion of Arbitrage and Free Lunch in Mathematical Finance. In: Yor, M. (eds) Aspects of Mathematical Finance. Springer, Berlin, Heidelberg. https://doi.org/10.1007/978-3-540-75265-3_3
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DOI: https://doi.org/10.1007/978-3-540-75265-3_3
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