Arbitrage: related pages

Arbitrage pricing theory; a valuation method which is theoretically sound but which is difficult to apply in practice.

A strategy dominates another if it is guaranteed to lead to a better results.

A portfolio that costs the same as another one, but which is always guaranteed to out-perform the other.

Two portfolios that will produce exactly the same cash flows in the future must have the same value now.

Hedge funds use a range of generally high risk investment strategies including arbitrage and short selling , they are frequently highly geared.

An arbitrage strategy that exploits inconsistencies between currency depreciation and differences in interest rates.

A profitable difference between the income an investment generates and the cost of financing it.

A strategy that aims to exploit inconsistencies between the price of a convertible and the equity it can be converted into.

Financial engineering designed to evade regulation.