Our working hypothesis is that an
arbitrageur with limited access to capital will try to exploit the basis trade opportunities that offer the best expected return per unit of risk capital.
are further legislative or judicial restrictions, appraisal
arbitrageursPart II presents the results of our empirical investigation of appraisal activity, showing since 2011 a large increase in activity and the emergence of appraisal
arbitrageurs. Part III demonstrates that the merits appear to matter in the decision to file appraisal petitions.
Risk
arbitrageurs need to determine how to set up the appropriate hedge position for collar offers.
The Jacklin arbitrage strategy is clearly impossible to execute if
arbitrageurs do not have access to the hidden retrade market.
However, those disasters should never have happened because those two rogue traders were supposed to be simple
arbitrageurs in the pursuit of low profits with little risk.
arbitrageurs might have been processing Ambac's derivative
Shleifer and Vishny (1997) examine the effect of intertemporal wealth constraints on the incentives of
arbitrageurs to eliminate mispricings between two securities with identical cash flows.
Even if their deviations were systematic, the effect on the average price would be slight if
arbitrageurs were alert for bargains.
Regulatory restrictions on arbitrage are directed at short sales, undertaken by an
arbitrageur when she believes the market price of a security is higher than its efficient price.
arbitrageur's portfolio because of the dediversification they
In the 1980s,
arbitrageur Ivan Boesky and junk-bond investor Michael Milken went to jail.
