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arxiv: 0906.2318 · v1 · submitted 2009-06-12 · 🧮 math.PR

No arbitrage without semimartingales

classification 🧮 math.PR
keywords arbitragesemimartingalesadmitallowablebrownianexamplefractionalmotion
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We show that with suitable restrictions on allowable trading strategies, one has no arbitrage in settings where the traditional theory would admit arbitrage possibilities. In particular, price processes that are not semimartingales are possible in our setting, for example, fractional Brownian motion.

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