In the context of a general continuous financial market model, we study whether the additional information associated with an honest time τ gives rise to arbitrage profits. By relying on the theory of progressive enlargement of filtrations, we explicitly show that no kind of arbitrage profit...

As a corollary to Delbaen and Schachermayer’s fundamental theorem of asset pricing (Delbaen in Math. Ann. 300:463–520, <CitationRef CitationID="CR5">1994</CitationRef>; Stoch. Stoch. Rep. 53:213–226, <CitationRef CitationID="CR6">1995</CitationRef>; Math. Ann. 312:215–250, <CitationRef CitationID="CR7">1998</CitationRef>), we prove, in a general finite-dimensional semimartingale setting, that the no unbounded profit...</citationref></citationref></citationref>