In a one price economy, the Fundamental Theorem of Asset Pricing (FTAP) establishes that no-arbitrage is equivalent to the existence of an equivalent martingale measure. Such an equivalent measure can be derived as the normal unit vector of the hyperplane that separates the attainable gain subspace and the convex cone representing arbitrage opportunities. However, in two-price financial models (where there is a bid-ask price spread), the set of attainable gains is not a subspace anymore. We use convex optimization, and the conic property of this region to characterize the “No-Arbitrage” principle in financial models with the bid-ask price spread present. This characterization will lead us to the generation of a set of price factor random variables. Under such a set, we can find the lower and upper bounds (supper-hedging and sub-hedging bounds) for the price of any future cash flow. We will show that for any given cash flow, for which the price is outside the above range, we can build a trading strategy that provides one with an arbitrage opportunity. We will generalize this structure to any two-price finite-period financial model.

Integrating large-scale wind energy in modern power systems is demanding more efficient mathematical models to properly address classical assumptions in power system problems. In particular, there are two main assumptions in power system problems with wind integration that have not been adequately studied yet; First, non-linear AC power flow equations have been linearized in most of the literature. Such simplifications can lead to inaccurate power flow calculations that may result in other technical issues. Second, wind power uncertainties are inevitable and have been mostly modelled using the traditional uncertainty modelling approaches, that may not be suitable for large-scale wind power integration. In this paper, we address both challenges: we present a tight second-order conic relaxation (SOCR) for optimal power flow (OPF) problem, and simultaneously, implement the new effective budget of uncertainty approach for uncertainty modelling that determines the maximum wind power admissibility first and then addresses the uncertainty in the model. To the best of our knowledge, this is the first study that proposes an effective robust second-order conic programming (ERSOCP) model that simultaneously addresses the issues of power flow linearization and wind power uncertainty with the new paradigm on the budget of uncertainty approach. Our numerical results show the merit of the proposed model against traditional linearized power flow equations as well as traditional uncertainty modelling approaches.

Based on measured astronomical position data of heavenly objects in the Solar System and other planetary systems, all bodies in space seem to move in some kind of elliptical motion with respect to each other, whereas objects follow parabolic escape orbits while moving away from Earth and bodies asserting a gravitational pull, and some comets move in near-hyperbolic orbits when they approach the Sun. In this article, it is first mathematically proven that the “distance between points on any two different circles in three-dimensional space” is equivalent to the “distance of points on a vector ellipse from another fixed or moving point, as in two-dimensional space.” Then, it is further mathematically demonstrated that “distance between points on any two different circles in any number of multiple dimensions” is equivalent to “distance of points on a vector ellipse from another fixed or moving point”. Finally, two special cases when the “distance between points on two different circles in multi-dimensional space” become mathematically equivalent to distances in “parabolic” or “near-hyperbolic” trajectories are investigated. Concepts of “vector ellipse”, “vector hyperbola”, and “vector parabola” are also mathematically defined. The mathematical basis derived in this Article is utilized in the book “Everyhing Is A Circle: A New Model For Orbits Of Bodies In The Universe” in asserting a new Circular Orbital Model for moving bodies in the Universe, leading to further insights in Astrophysics.