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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 MatchesArbitrage Trading Program (ATP)Arbitrage Trading Program (ATP)See: Program trading. ArbitrageArbitrageThe simultaneous purchase and sale of two different, but closely related, securities to take advantage of a disparity in their prices. Alternatively, the purchase and sale of the same security in different markets.Originally, most arbitrage occurred in the currency markets: arbitrageurs would buy in one market and sell in another. Nowadays, the practice applies equally to commodities, futures and stocks. For instance, if a company is dual-listed on two stock exchanges, and the prices are at variance, an arbitrageur has an opportunity to buy in one market and sell in another before the disparity is closed. Tax arbitrageTax arbitrageTrading that takes advantage of a difference in tax rates or tax systems as the basis for profit. Merger ArbitrageMerger ArbitrageIn the context of hedge funds, a style of management that involves the simultaneous purchase of stock in a company being acquired and the sale of stock in its acquirer. Risk controlled arbitrageRisk controlled arbitrageA self-funding, self-hedged series of transactions that generally use mortgage securities (MBS) as the primary assets. Further SuggestionsReversal ArbitrageConvertible Arbitrage International arbitrage Riskless arbitrage Multiple Arbitrage Arbitrageur Locational arbitrage One-way arbitrage Covered interest arbitrage Covered interest arbitrage arbitrageur Structured arbitrage transaction Arbitrage bonds Discount Arbitrage Currency arbitrage Index arbitrage Triangular arbitrage Triangular arbitrage conversion arbitrage Special arbitrage account Arbitrage |
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