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Related to arbitrage: Arbitrage pricing theory


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 ?
Basically, an arbitrage involves simultaneous buying and selling of an asset in order to profit from the difference in price.
While the idea to buy something cheap and sell it at a higher price is age-old, the concept of retail arbitrage has emerged in the digital age.
With that tact inscribed into its mission statement, the Arbitrage Fund has had its eyes on Pandora Media and its freshly closed merger with Sirius XM Holdings Inc.
However, the information contained in the odds was still exploitable to gain profits through arbitrage and active betting strategies.
The popularity of currency arbitrage strategies among the wide investing public is growing exponentially due to their numerous advantages.
Physical Commodities Arbitrage Trading Company offering a web-based International Trade platform.
Sistema lost its appeal against the arbitrage court's judgement that it must pay Russian oil companies Rosneft and Bashneft RUB136 billion in relation to damages allegedly suffered by Bashneft as a result of its reorganisation in 2014.
The question becomes, have negative rates caused rifts in interest rate parity such that arbitrage of currency is possible?
The other form of arbitrage is done by market participants (arbitrageurs).
It shows that the stochastic differential equation models used in derivative pricing can be interpreted as linear factor models that relate sources of risk to returns, illustrating how Ross' Arbitrage Pricing Theory leads to the absence of arbitrage equations that govern the pricing of derivatives.
Under the assumption of no arbitrage and volatility uncertainty, Fernholz and Karatzas [6] considered to outperform the market.