Suppose there are two riskless assets offering rates of return r and r’, respectively. Assuming no transaction costs, one of the strongest statements...

Yield Curve option-pricing Models.

A multivariate model for estimating the cost of equity capital, which incorporates several systematic risk factors and the effects of Arbitrageurs.

The simultaneous buying and selling of a security at two different prices in two different markets, resulting in profits without risk. Perfectly...