# No-Arbitrage

*Quant & Pricing — Finicade finance glossary*

The master assumption of pricing theory: you can't make a riskless profit from nothing, because any such gap would be traded away instantly. Almost every derivative price is derived by insisting no free lunch exists.

**Also known as:** no arbitrage

**Related terms:** [Arbitrage](https://finicade.com/glossary/arbitrage), [Put-Call Parity](https://finicade.com/glossary/put-call-parity), [Risk-Neutral Pricing](https://finicade.com/glossary/risk-neutral-pricing), [Replication](https://finicade.com/glossary/replication)

**Taught in:** Hull Street — Put–Call Parity, Derived

Source: https://finicade.com/glossary/no-arbitrage