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The power of arbitrage in financial economics. (Research Notes).

Publication: International Advances in Economic Research
Publication Date: 01-AUG-02
Format: Online - approximately 201 words
Delivery: Immediate Online Access
Full Article Title: The power of arbitrage in financial economics. (Research Notes).(Brief Article)

Article Excerpt
University of New Brunswick--Canada

A situation in which it is possible to earn a positive rate of return without investing any funds nor taking any risk is known as an arbitrage opportunity. One consequence of no arbitrage in financial markets is the law of one price, which states that...

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