A proof of the Dalang-Morton-Willinger theorem

dc.creatorRokhlin, Dmitry B.
dc.date2008-04-21
dc.date.accessioned2026-07-07T09:33:46Z
dc.date.available2026-07-07T09:33:46Z
dc.descriptionWe give a new proof of the Dalang-Morton-Willinger theorem, relating the no-arbitrage condition in stochastic securities market models to the existence of an equivalent martingale measure with bounded density for a $d$-dimensional stochastic sequence $(S_n)_{n=0}^N$ of stock prices. Roughly speaking, the proof is reduced to the assertion that under the no-arbitrage condition for N=1 and $S\in L^1$ there exists a strictly positive linear fucntional on $L^1$, which is bounded from above on a special subset of the subspace $K\subset L^1$ of investor's gains.
dc.description9 pages
dc.identifierhttps://arxiv.org/abs/0804.3308
dc.identifierhttp://arxiv.org/abs/0804.3308
dc.identifier.urihttp://salesiana.dossiersoluciones.com/handle/123456789/159250
dc.subjectProbability
dc.subject60G42; 91B24
dc.titleA proof of the Dalang-Morton-Willinger theorem
dc.typetext

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