In economic theory a frictionless market is a financial market without transaction costs. [1] Friction is a type of market incompleteness. Every complete market is frictionless, but the converse does not hold. In a frictionless market the solvency cone is the halfspace normal to the unique price vector. The Black–Scholes model assumes a frictionless market. [2]
References
- ^ "Frictionless Market - Investopedia". Retrieved October 14, 2011.
- ^ Durbin, Michael (2010). All About Derivatives (2 ed.). McGraw-Hill Professional. p. 165. ISBN 978-0-07-174351-8.
 | This finance-related article is a stub. You can help Wikipedia by expanding it. |
In economic theory a frictionless market is a financial market without transaction costs. [1] Friction is a type of market incompleteness. Every complete market is frictionless, but the converse does not hold. In a frictionless market the solvency cone is the halfspace normal to the unique price vector. The Black–Scholes model assumes a frictionless market. [2]
References
- ^ "Frictionless Market - Investopedia". Retrieved October 14, 2011.
- ^ Durbin, Michael (2010). All About Derivatives (2 ed.). McGraw-Hill Professional. p. 165. ISBN 978-0-07-174351-8.
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| This finance-related article is a stub. You can help Wikipedia by expanding it. |