Law of one price: related pages
Arbitrage
Making a gain through trading securities without committing or risking money.
Black-Scholes
The most widely used method of option valuation. More complex models are sometimes necessary as it uses a number of simplifying assumptions.
Dominant trading strategy
A portfolio that costs the same as another one, but which is always guaranteed to out-perform the other.
Efficient markets
A market in which securities prices reflect all available information.
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