A More General One period Model

Tomas Björk

in Arbitrage Theory in Continuous Time

Second edition

Published in print March 2004 | ISBN: 9780199271269
Published online October 2005 | e-ISBN: 9780191602849 | DOI:

Series: Oxford Finance Series

A More General One period Model

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This chapter examines the absence of arbitrage and completeness in slightly more general terms than in the binomial model. Although a one period model is considered, the financial market and the underlying sample space will be more general than for the binomial model. Practice exercises are included.

Keywords: binomial model; financial market; absence of arbitrage; completeness; pricing; financial derivatives

Chapter.  3465 words. 

Subjects: Financial Markets

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