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Note: If downvote for meta means no to a yes/no question, then...

  • Edit: Ah, a downvote. Ok so I guess it's ON-topic.

I am asking because of this

Is it fair in an introductory stochastic calculus/derivatives pricing class to ask for the price when absence of arbitrage is violated?

Sounds like 1 of those soft-questions on maths se or quant se, ethics questions on acad se or work se or a question on maths educator se.

some guide questions:

  1. we don't have a quant education se...we can't possibly have an education se for every single non-education academic se besides academia se if they aren't so popular yet right? i figure maths se and computer science se are so popular that they got their own spin offs. but quant se? did it even graduate yet?

  2. it is closed as opinion-based instead of off-topic. what gives? which is it? is it the wrong close vote?

  3. re opinion based, what about ?

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Years ago, I taught undergraduates (from Shreve volumes I and II, as an adjunct). We definitely discussed in class what to do if the market data (seems to) admit arbitrage. I wouldn't put a question like this on an exam...

I think, questons like "is it fair to ask stuff on the exam that wasn't properly covered in class or reading assignments" are better off in some kind of teaching forum.

However a question along the lines of "what are the pricing logic's options when market data admits arbitrage", not related to teaching, might be on-topic here.

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  • $\begingroup$ we don't have a quant education se...we can't possibly have an education se for every single non-education academic se besides academia se if they aren't so popular yet right? i figure maths se and computer science se are so popular that they got their own spin offs. but quant se? did it even graduate yet? $\endgroup$
    – BCLC
    Sep 22 '21 at 10:24
  • $\begingroup$ @BCLC I suggest you completely re-edit your question leaving it on-topic, like, what can pricing logic do when market data admits arbitrage, and de-emphasize the off-topic context (that it arose as an exam question), then it might get re-opened. $\endgroup$ Oct 14 '21 at 5:13

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