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Arbitrage free option pricing models |
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Arbitrage free option pricing modelsYield curve option-pricing models.Arbitrage free option pricing models Similar MatchesLocational arbitrageLocational arbitrageAttempt to exploit discrepancies in exchange rates between banks. ArbitrageArbitrageA combination of transactions designed to profit from an existing discrepancy among prices, exchange rates, and/or interest rates on different markets without risk of these changing. Simplest is simultaneous purchase and sale of the same thing in different markets, but more complex forms include triangular arbitrage and covered interest arbitrage. Arbitrage Trading Program (ATP)Arbitrage Trading Program (ATP)See: Program trading. Tax arbitrageTax arbitrageTrading that takes advantage of a difference in tax rates or tax systems as the basis for profit. Discount ArbitrageDiscount ArbitrageA riskless arbitrage in which a discount option is purchased and an opposite position is taken in the underlying security. The arbitrageur may either buy a call at a discount and simultaneously sell the underlying security (basic call arbitrage) or maybuy a put at a discount and simultaneously buy the underlying security (basic put arbitrage). See also Discount. Further SuggestionsRiskless arbitrageCovered interest arbitrage Currency arbitrage International arbitrage Merger Arbitrage Special arbitrage account Arbitrage bonds arbitrageur Multiple Arbitrage Triangular arbitrage Convertible Arbitrage Covered interest arbitrage Structured arbitrage transaction One-way arbitrage arbitrage Arbitrageur Risk controlled arbitrage Triangular arbitrage Index arbitrage Reversal Arbitrage conversion arbitrage |
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