English

Constructive no-arbitrage criterion under transaction costs in the case of finite discrete time

Probability 2008-12-10 v1 Computational Finance

Abstract

We obtain a constructive criterion for robust no-arbitrage in discrete-time market models with transaction costs. This criterion is expressed in terms of the supports of the regular conditional upper distributions of the solvency cones. We also consider the model with a bank account. A method for construction of arbitrage strategies is proposed.

Keywords

Cite

@article{arxiv.math/0603284,
  title  = {Constructive no-arbitrage criterion under transaction costs in the case of finite discrete time},
  author = {Dmitry B. Rokhlin},
  journal= {arXiv preprint arXiv:math/0603284},
  year   = {2008}
}

Comments

18 pages, 1 fig