Gauge Theory of Arbitrage (2)
Accounting of dynamical effects requires dynamical equations rather than stable points equations (those usually used done in equilibrium pricing models). It turns out that to formulate these dynamical equations one can rely on the underlying symmetry of financial markets. This underlying symmetry is so powerful that it uniquely defines the structure of the dynamical theory. This symmetry is the symmetry of financial dynamics with respect to independent and local changes in the scale of asset units and money units - the gauge symmetry of financial markets.
The Gauge Theory of Arbitrage covers:
