Editing Rational pricing (section)

===Assets with identical cash flows===
Two assets with identical cash flows must trade at the same price. Where this is not true, the arbitrageur will:
# sell the asset with the higher price ([[short selling|short sell]]) and simultaneously buy the asset with the lower price
# fund his purchase of the cheaper asset with the proceeds from the sale of the expensive asset and pocket the difference
# deliver on his obligations to the buyer of the expensive asset, using the cash flows from the cheaper asset.