In financial economics, rational pricing is the assumption that asset pricing models reflect the arbitrage-free price of the asset. This assumption is fundamental to the pricing of derivative instruments and useful in pricing fixed income securities.
In financial economics, rational pricing is the assumption that asset pricing models reflect the arbitrage-free price of the asset. This assumption is fundamental to the pricing of derivative instruments and useful in pricing fixed income securities.
Source: Wikipedia "Rational pricing" · CC BY-SA 4.0
Share this article: X · Bluesky