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Wikipedia’s article on arbitrage bounds is loaded with jargon, and thus requires a lot of prerequisite knowledge to understand what should be a basic definition.

What exactly are the “bounds” in arbitrage bounds? What is being bounded, and what are the extreme ends of the range? Are they prices?

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    $\begingroup$ I agree, the wiki article is really bad. Could you provide more context for your question? I.e. aside from wiki, where does it come from? $\endgroup$
    – LazyCat
    May 17 at 21:49
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    $\begingroup$ You may want to have a look at this question where some of these arbitrage bounds are listed. They are upper and lower bounds for option prices and derived on the assumption that the market is free of arbitrage. Avoiding assumptions about the distribution of the stock price, these bounds therefore universally apply to many different models (but are perhaps not quite as tight). $\endgroup$
    – Kevin
    May 17 at 21:53

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