arbitrage

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arbitrage:

see foreign exchangeforeign exchange,
methods and instruments used to adjust the payment of debts between two nations that employ different currency systems. A nation's balance of payments has an important effect on the exchange rate of its currency.
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References in periodicals archive ?
Therefore, any arbitrage opportunities under fair value conditions will translate into distortions to financial reporting, regardless of whether one can actually implement the arbitrage strategy or practically hedge.
We utilize the event time approach to compare the raw returns of a risk arbitrage strategy to a conservative buy and hold the market strategy.
Moreover, the annuity arbitrage strategy can produce a very attractive net return on the funds committed to the plan--a return that can outperform fixed income alternatives and exceed the results one might obtain through a charitable gift annuity.
Thus, implementing the arbitrage strategy with the DJIA stocks and Diamonds calls for a straightforward rule of starting with one share of each company and then scaling it up to the limit of available investable funds.
Therefore, investors will use the long arbitrage strategy if the following conditions hold:
Some UL products offer guaranteed death benefit riders, which work well with the arbitrage strategy described below.
Convertible arbitrage strategy usually involves buying a portfolio of convertible securities and hedging equity risk by short-selling the underlying stock.
The current environment of falling interest rates could hardly be better for convertible arbitrage strategy.
The implication is that equity in observed wages among blacks and whites was an important component of Ford's arbitrage strategy.
We have followed more complex methodologies that are based on the main principles of asset valuation and provide arbitrage portfolios without previously specifying the exact nature of the arbitrage strategy to be used.
Newell's leveraged arbitrage strategy greatly expanded the Congregation's potential liability and risk beyond the amount of cash invested.