Think of a world in which investors--whom we will call arbitragers
for reasons that will become clear--are risk neutral and are willing and able to buy or sell any security in unlimited quantities as long as they expect the trade to be profitable.
For instance, dark pools such as Liquidnet developed specifically with the goal of allowing large anonymous trades without tipping off high frequency arbitragers
that a big order is in the market and moving prices.
If, at the expiration date, the accumulated cost does not reach the deductible, the arbitrager
would not exercise the call style option, nor would he or she have any obligation with the insured individual.
i]NG) he will hedge as an arbitrager
and hedging options open to both the exporter and importer is shown below:
Also, the write-in comments suggest the more research is needed in areas regarding costs and advantages of regulatory compliance in domestic versus foreign markets, the emphasis toward cash flow reporting, and the impact of different types of ownership concentration (employee, institutional, arbitragers
, insiders, and managers).
Since 1986, Stephen has worked in the financial arena, enjoying success as a lead investor, portfolio manager, market maker, arbitrager
and trader in senior debt and equity markets.
is a trader who will attempt to take advantage of market imperfections in order to capture a profit.
could buy clothes, say, in Portugal and sell them in Germany.
is always seeking an opportunity to exploit market imperfections.
Her husband might as well be a budding arbitrager
, or a real estate lawyer; and Alec Baldwin, as Frankie, doesn't play up the thuggish side of the character.
As far as I can discern, the Street performs no function in this story other than that of making money for itself; apart from the arguable example of the Holbrook character, we are not introduced to a single Wall Street denizen-- broker, lawyer, arbitrager
or takeover artist--who shows the least interest in capital formation, research and development, maintenance of plant and equipment or any of the other laudatory purposes presumably served by the modern stock market.
After all, had not Martin Peretz written an ode to the arbitrager
in the March 25, 1985, issue and called it "Productive Predators'?