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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 MatchesTriangular arbitrageTriangular arbitrageArbitrage among three currencies. For example (letting x/y be the currency x per unit of currency y exchange rate), if $/¥ > ($/£)(£/¥), then an arbitrager can make a profit buying £ with $; buying ¥ with those £; and then selling those ¥ for $. Risk controlled arbitrageRisk controlled arbitrageA self-funding, self-hedged series of transactions that generally use mortgage securities (MBS) as the primary assets. Currency arbitrageCurrency arbitrageTaking advantage of divergences in exchange rates in different money markets by buying a currency in one market and selling it in another market. Covered interest arbitrageCovered interest arbitrageOccurs when a portfolio manager invests dollars in an instrument denominated in a foreign currency and hedges the resulting foreign exchange risk by selling the proceeds of the investment forward for dollars. ArbitrageurArbitrageurA person or firm carrying out arbitrage. Further SuggestionsMultiple ArbitrageArbitrageur Arbitrage Trading Program (ATP) Riskless arbitrage One-way arbitrage conversion arbitrage International arbitrage Reversal Arbitrage Locational arbitrage Index arbitrage Merger Arbitrage Tax arbitrage Arbitrage bonds Special arbitrage account Structured arbitrage transaction Convertible Arbitrage Discount Arbitrage Arbitrage arbitrage Triangular arbitrage Covered interest arbitrage |
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