-lived correlated assets we examine the impact of alternative types of arbitrage-seeking algorithms. These arbitrage robot traders vary … in their latency and whether they make or take market liquidity. All arbitrage robot traders we examine generate greater … conformity to the law-of-one-price across the twin markets. However, only the liquidity providing arbitrage robot trader moves …

total market value of the firm if pricing is arbitrage-free. We test the empirical validity of this invariance theorem in …

involving financial options. The arbitrage free option price is independent of the probability distribution of the underlying … exploit more arbitrage as they gain experience. The professional traders exhibit a less probability sensitive valuation, but … intuitive and less analytic pattern of behaviour than the students, despite their superior knowledge in financial market theory …

involving financial options. The arbitrage free option price is independent of the probability distribution of the underlying … exploit more arbitrage as they gain experience. The professional traders exhibit a less probability sensitive valuation, but … intuitive and less analytic pattern of behaviour than the students, despite their superior knowledge in financial market theory …

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 …

not allowing for arbitrage among firms with different capital structures, we are able to address this issue without making …