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arxiv: 0801.0718 · v4 · submitted 2008-01-04 · 💱 q-fin.PR · math.PR

On the Stickiness Property

classification 💱 q-fin.PR math.PR
keywords stickinessnotionprocessesabsensearbitragecostsexamplesfurther
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In [2] the notion of stickiness for stochastic processes was introduced. It was also shown that stickiness implies absense of arbitrage in a market with proportional transaction costs. In this paper, we investigate the notion of stickiness further. In particular, we give examples of processes that are not semimartingales but are sticky.

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