arbitrage

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Words related to arbitrage

a kind of hedged investment meant to capture slight differences in price

practice arbitrage, as in the stock market

References in periodicals archive ?
We construct a value weighted risk arbitrage portfolio and use it to evaluate the risk-adjusted performance of a risk arbitrage strategy applied to collar offers.
To offset this risk of loss, the annuity arbitrage strategy also involves the purchase of a guaranteed universal life insurance policy, designed to require level annual premiums until the death of the insured.
The planner makes the Jacklin arbitrage strategy infeasible for the agent by controlling initial investment (s, x).
An arbitrage strategy attempts to lock in a risk-free profit by exploiting the mispricing.
Therefore, investors will use the short arbitrage strategy if the following condition holds:
The volatility arbitrage strategy is a bet that the embedded option in the convertible bond is mispriced.
Convertible arbitrage strategy usually involves buying a portfolio of convertible securities and hedging equity risk by short-selling the underlying stock.
The current environment of falling interest rates could hardly be better for convertible arbitrage strategy. Convertible arbs have been among the top-performing hedge funds, gaining over 25 percent in 2000 and more than 6 percent in 2001's first quarter, according to the CSFB/ Tremont Convertible Arbitrage index, Credit Suisse First Boston estimates that half of all convertible bond trades now come from hedge funds.
The implication is that equity in observed wages among blacks and whites was an important component of Ford's arbitrage strategy.
We have followed more complex methodologies that are based on the main principles of asset valuation and provide arbitrage portfolios without previously specifying the exact nature of the arbitrage strategy to be used.
Second, the portfolio used to facilitate arbitrage strategy is usually constructed using a subset of the shares which comprise the share price index and is not in general perfectly correlated with the SPI futures contract.
Newell's leveraged arbitrage strategy greatly expanded the Congregation's potential liability and risk beyond the amount of cash invested.
In particular, FireEye expects that many of the holders with whom we negotiate the repurchase of the 1.000% Notes employ a convertible arbitrage strategy with respect to the 1.000% Notes and have a short position with respect to FireEyes common stock that they would close, through the entry into and/or unwinding of various derivative transactions with respect to shares of FireEyes common stock and/or purchases of FireEyes common stock or other securities of FireEye (including the notes, in which case such a holder that employs a convertible arbitrage strategy may additionally sell shares of FireEyes common stock in connection with such transactions), in connection with FireEyes repurchase of their 1.000% Notes.
GMP will provide non-US investors direct access to Gabelli's specialized merger arbitrage strategy, a recognized leader in the US