Show that, if the Law of One Price fails to hold, then every payoff (c in I(D))

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Show that, if the Law of One Price fails to hold, then every payoff $c \in I(D)$ can be replicated with an arbitrarily small initial wealth.

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Financial Markets Theory Equilibrium Efficiency And Information

ISBN: 9781447174042

2nd Edition

Authors: Emilio Barucci, Claudio Fontana

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Question Posted: Mar 22, 2024 01:00 PM

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Show that, if the Law of One Price fails to hold, then every payoff (c in I(D))

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Financial Markets Theory Equilibrium Efficiency And Information

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