No free lunch with vanishing risk

id: no-free-lunch-with-vanishing-risk-264-4644142
title: No free lunch with vanishing risk
text: No free lunch with vanishing risk (NFLVR) is a concept used in mathematical finance as a strengthening of the no-arbitrage condition. In continuous time finance the existence of an equivalent martingale measure (EMM) is no more equivalent to the no-arbitrage-condition, but is instead equivalent to the NFLVR-condition. This is known as the first fundamental theorem of asset pricing. Informally speaking, a market allows for a free lunch with vanishing risk if there are admissible strategies, which
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original url: https://en.wikipedia.org/wiki/No_free_lunch_with_vanishing_risk
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date modified: 2023-12-02T21:36:00Z
main entity: {"identifier":"Q7045227","url":"https://www.wikidata.org/entity/Q7045227"}
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