Chapter eleven Asset(资产) Markets
Chapter Eleven Asset (资产)Markets
Main issue No Arbitrage(套利) Condition
Main Issue No Arbitrage(套利) Condition
Assets An asset is a commodity that provides a flow of services over time E.g. a house, or a computer. A financial asset provides a flow of money over time -a security
Assets An asset is a commodity that provides a flow of services over time. E.g. a house, or a computer. A financial asset provides a flow of money over time -- a security
Assets Typically asset values are uncertain. Incorporating uncertainty is difficult at this stage so we will instead study assets assuming that we can see the future with perfect certainty
Assets Typically asset values are uncertain. Incorporating uncertainty is difficult at this stage so we will instead study assets assuming that we can see the future with perfect certainty
Arbitrage(套利) Arbitrage is trading for profit in commodities which are not used for consumption. E.g. buying and selling stockS, bonds, or stamps No uncertainty all profit opportunities will be found. What does this imply for prices over time?
Arbitrage (套利) Arbitrage is trading for profit in commodities which are not used for consumption. E.g. buying and selling stocks, bonds, or stamps. No uncertainty all profit opportunities will be found. What does this imply for prices over time?