Relativistic Asset Pricing: A Formal Treatment

Abstract

A framework for financial markets constrained by the finite speed of information. An information-velocity limit defines causal domains analogous to light cones, and arbitrage is realisable only where those domains overlap. The no-arbitrage condition is restated under causal filtrations, building on the established theory of asset pricing under delayed and restricted information.

The paper proves an obstruction result on which dynamics can carry martingale prices, derives an operational bound on arbitrage reach from signal-survival probability, and derives the maturity-dependent hedging cost of communication blackouts, with a worked Earth–Mars example. As information speed grows without bound the model converges to classical finance.