Znanstveni kolokviji

The assumption of "no arbitrage," or "no free money," may be stated geometrically using convex cones. From this one may deduce two Fundamental Theorems on Asset Pricing which are used to estimate prices for options and other financial contracts contingent upon an uncertain future. In this talk I hope to explain how the Hahn-Banach Theorem and Open Mapping Theorem imply the existence of a consensus model of the future with probabilities constrained by current free market prices.