bounds for cash streams can be very wide or very close. Arbitrage bounds are a special case of our general valuation bounds … valuation bounds under the linear higher order conditions on the term structure generalize arbitrage bounds and provide a … sharper method when the arbitrage principle is too weak. …

allow the insider to have free lunches with vanishing risk, or even to exercise arbitrage. …

knowledge of the maximal stock price process, given by a regular diffusion, arbitrage opportunities exist. …