Pointwise Arbitrage Pricing Theory in Discrete Time

Understand

We develop a robust framework for pricing and hedging of derivative securities in discrete-time financial markets.

• We consider markets with both dynamically and statically traded assets and make minimal measurability assumptions.
• We obtain an abstract (pointwise) Fundamental Theorem of Asset Pricing and Pricing--Hedging Duality.
• Our results are general and in particular include so-called model independent results of Acciao et al.