  We consider a financial market model featuring a risky asset with a sticky
geometric Brownian motion price dynamic and a constant interest rate $r \in
\mathbb R$. We prove that the model is arbitrage-free if and only if $r =0 $.
In this case, we find the unique riskless replication strategy, derive the
associated pricing equation. We also identify a class of replicable payoffs
that coincides with the replicable payoffs in the standard Black-Scholes model.
Last, we numerically evaluate discrete-time hedging and the hedging error
incurred from misrepresenting price stickiness.
