* an increase in the arbitrageur
's own credit risk, which could lead to a larger markup (f).
record date and the closing date that arbitrageurs
(21) By buying up large positions after the announcement of a transaction, arbitrageurs
can overcome the collective action problems that would otherwise render appraisal ineffective.
That deals are more likely to fail in a declining market and thereby result in losses for risk arbitrageurs
probably accounts for this nonlinearity.
(20) Better yet, the arbitrageur
could join one of the exchanges S < [pi]e, where [delta](S) < 0, which means with s = 0 he would get a payment from the exchange upon entry.
the pricing effects of rational arbitrageurs
(13) An important reason why arbitrageur
position changes are "Pareto-improving"--that is, they make some people better off without making anyone worse off--is that price changes result in wealth redistributions, and market segmentation implies that agents' marginal rates of substitution differ (as shown by Geanakoplos and Polemarchakis  in a general, incomplete market setting).
Arbitrage cannot be depended on to eliminate these irrationalities because arbitrage works imperfectly when there are no good substitute securities for the ones that the arbitrageur
thinks are overvalued or undervalued.
For example, Den of Thieves, in which the arbitrageur
Adds Sharon Kalin, a powerful New York arbitrageur
: "I think he did the right things on Wall Street.
The problem of fundamental risk arises because the arbitrageur
, unless hedged, has a position in the stock of a particular company that is exposed to loss from a change in the company's fortunes.
(70) This added risk makes it less attractive to be a risk arbitrageur
We see Tom (Daniel Newman), a buff young man, sitting around his flat, bored and depressed; George Norris (Mark McGann), seemingly a businessman, taking meetings, going home to the suburbs, accompanying his wife and son to a concert; and Max Bergman (Corey Johnson), an American arbitrageur
whose life seems intolerably stressful.
(For example, if an ETF's shares trade at a premium to net asset value, an arbitrageur
could purchase the securities to be deposited upon the purchase of ETF shares, purchase a creation unit of shares from the ETF, and sell the ETF shares through a broker at the market price.