Miller, Shane M.; Platen, Eckhard - 2008
.7) remains applicable under the MCEV model. This does not mean that
arbitrage exists, as defined in Platen & Heath (2006). The … definition of arbitrage
used within the real-world pricing framework of Platen & Heath (2006) is that
“strictly positive profits … measure
is not necessary to capture the true economic spirit of no-arbitrage. Hence, the
NFLVR is mathematically convenient …