arbitrage-free-derivatives-pricing

To ensure no-arbitrage pricing for derivatives, you must explicitly define product payoff, discount curve, and forward construction rules, then implement valuation equations with numerical solvers and no-arbitrage checks to detect pricing residuals and curve inconsistencies.

Arbitrage-free derivatives valuation is a pricing workflow that uses explicit carry conventions and control-ready valuation diagnostics to prevent risk-free profit opportunities across asset classes. It outputs pricing residuals, curve consistency diagnostics, and model-versus-market control exceptions.

You can run derivatives pricing diagnostics by executing the arbitrage-free pricing diagnostics script with an input CSV file containing your market data. The script processes the valuation equations and outputs the diagnostics to a JSON artifact.

Yes, you can use this workflow for production valuation models and pricing control frameworks across asset classes. It requires explicit definition of product payoff, discount curve, and forward construction rules to generate control-ready valuation diagnostics.

Derivative valuations show pricing residuals and curve inconsistencies when models fail no-arbitrage checks, meaning discount curves and forward construction rules are misaligned with market data. Running control-ready valuation diagnostics identifies these model-versus-market exceptions.