The purpose of this section is to outline the key concepts of financial theory, financial markets and arbitrage-free pricing. Global and regional trade nowadays highly depend on the existence of markets, e.g., real estate markets, agricultural markets, or financial markets. Trade takes places at a market which constitutes binding guidelines for all participants in order to guarantee fast and efficient trades. A market is “a means by which the exchange of goods and services takes place as a result of buyers and sellers being in contact with each others” (cp. Enceclopædia Britannica (2005)). Consequently, a financial market deals with financial products such as stocks, futures, or option contracts.


Option Price Inventory Level Commodity Price Spot Market Hedging Strategy 
These keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.


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© Gabler Verlag | Springer Fachmedien Wiesbaden GmbH 2010

Authors and Affiliations

  • Jan Arnold

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