3 ms·

Sure they are. If the price you calculated and the price in the market is significantly different, the law of no arbitrage is violated and therefore you have ca

by smabie 7y ago

Sure they are. If the price you calculated and the price in the market is significantly different, the law of no arbitrage is violated and therefore you have can fulfill your sworn duty as a market participant and arbitrage it away until everything is hunkydory again.

infinite8s 7y ago
Thats also the reason why the market can never go to 100% passively managed money.
- xorfish 7y ago
  yes, but 99% is possible.
  - smabie 7y ago
    Possible, but would negatively affect liquidity and increase volatility. Trading would become more expensive as well.