We analyse questions of arbitrage in financial markets in which asset prices change in time as stationary stochastic … framework of this model, we find conditions that are necessary and sufficient for the absence of arbitrage opportunities. We …

In this paper we construct arbitrage-free market models of stochastic volatility type for one stock, one bank account … of dynamic arbitrage in the market can be characterized in terms of drift restrictions on the model coefficients. Most … provide a class of explicit examples satisfying the no-arbitrage conditions. This allows us to construct arbitrage-free multi …