conjunction with the reference portfolio provides minimum-cost insurance at arbitrary arbitrage-free security prices. We derive a … characterization of incomplete derivative markets in which the minimum-cost portfolio insurance is independent of arbitrage …

to no-arbitrage arguments, our set of investment opportunities increases and the set of possible equivalent martingale …

possible in an incomplete markets framework the no--arbitrage arguments that have been developed in complete markets leads us … to defining the concept of pseudo--arbitrage. Building on this concept we are able to extend the no--arbitrage idea to a …

values the option with his arbitrage free price, which is independent of the probability of the stock movement. The … experimental data show that the traiders learn to exploit more arbitrage as they gain experience, however, they value the option by … probability values. Nevertheless, there are hints for learning towards the arbitrage free price, driven by the expected payoff …

that professional traders achieve lower arbitrage exploitation as well as lower expected payoffs, as a consequence of …