1. Models for pricing futures and options are said to be based on arbitrage arguments. a. What...

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1. Models for pricing futures and options are said to be based on arbitrage arguments.

a. What does arbitrage mean?

b. What is the investor’s incentive to engage in arbitrage?

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Foundations Of Global Financial Markets And Institutions

ISBN: 9780262039543

5th Edition

Authors: Frank J. Fabozzi, Frank J. Jones, Francesco A. Fabozzi, Steven V. Mann

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