Show that if there exists a dominant trading strategy, then there exists an arbitrage opportunity. How to

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Show that if there exists a dominant trading strategy, then there exists an arbitrage opportunity. How to construct a securities model such that there exists an arbitrage opportunity but dominant trading strategy does not exist?

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Mathematical Models Of Financial Derivative

ISBN: 9783642447938

2nd Edition

Authors: Yue-Kuen Kwok

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Question Posted: Dec 02, 2023 03:16 AM

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Show that if there exists a dominant trading strategy, then there exists an arbitrage opportunity. How to

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To prove that if there exists a dominant trading strategy then there exists an arbitrage opportunity we can use a proof by contradiction Assume that t...View the full answer

Mathematical Models Of Financial Derivative

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