“…Arbitrage has proven to be a very important tool in the study of financial engineering and has received much attention in the literature, see for example, Carassus, Pham, and Touzi (2001), Jouini and Kallal (1995), Hubermann (1982), Prisman (1986), Dermody and Prisman (1993), Wilhelm (1985), Ardalan (1999), Ross (1976), Li and Wang (2001), and Wang and Xia (2002), to name a few. One of the most fundamental results in finance is the equivalence between no-arbitrage condition and the existence of a pricing operator in markets with no transaction costs (see Ross, 1978).…”