Arbitrage When is not selling best? When (1+R)p0>(1+r)p0 L.e. if the rate-or-return to holding the asset R>r the interest rate, then keep the asset. And if R<r then 1+R)p0<(1+r)p0 so sell now for $poArbitrage When is not selling best? When I.e. if the rate-or-return to holding the asset the interest rate, then keep the asset. And if then so sell now for $p0 . (1 ) (1 ) . + R p0  + 0 r p R  r R  r (1 ) (1 ) + R p0  + 0 r p