|
|
Reversal Arbitrage |
|
|
|
 Home Site Map Add Term Search About Us Contributors |
Reversal ArbitrageA riskless arbitrage that involves selling the stock short, writing a put, and buying a call. The options have the same terms.Reversal Arbitrage Similar MatchesMultiple ArbitrageMultiple ArbitrageIn the context of hedge funds, a style of management where by the fund employs more than one arbitrage strategy. Portfolio manager opportunistically allocates capital among the various strategies in order to create the best risk/reward profile for the overall fund. Common strategies include merger arbitrage, convertible arbitrage, fixed income arbitrage, long/short equities pairs trading, and volatility arbitrage. In the context of equity and private equity investment, this refers to an investment in a firm where by standard multiples (earnings/price, book/price) indicate the price is far cheaper than industry averages. Arbitrage Trading Program (ATP)Arbitrage Trading Program (ATP)See: Program trading. Risk controlled arbitrageRisk controlled arbitrageA self-funding, self-hedged series of transactions that generally use mortgage securities (MBS) as the primary assets. 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. Structured arbitrage transactionStructured arbitrage transactionA self-funding, self-hedged series of transactions that usually use mortgage-backed securities (MBS) as the primary assets. Further SuggestionsOne-way arbitragearbitrage Convertible Arbitrage Arbitrageur Arbitrage bonds Locational arbitrage Covered interest arbitrage Arbitrage free option pricing models Tax arbitrage Index arbitrage Arbitrage Currency arbitrage Merger Arbitrage Riskless arbitrage Triangular arbitrage Covered interest arbitrage International arbitrage conversion arbitrage Special arbitrage account Triangular arbitrage arbitrageur |
|
|
|