0 the method on the stock exchange of buying something in one place and selling it in another place at the same time, in order to make a profit from the difference in price in the two places
1 the practice of buying something, such as shares or currency, in one place and selling them in another where you can get a higher price at the same time:
Otherwise, even very small discrepancies between the equilibrium values of the prices and the realized ones would open the door for huge arbitrage opportunities.
As of 1992, a period of spatial arbitrage or adjustment appears to have begun.
In economic terms, arbitrage opportunities are always present in precision measurement; it is only a question of their greater or lesser magnitude.
Even when the conditions for arbitrage are present, the causal paths are multiple - our project argues.
In no arbitrage pricing, a replicating strategy gives a price that turns out to be an expectation under a modified (risk neutral) probability law.
We need an additional arbitrage condition between improving/spying and introducing a new intermediate good.
The construction of these indices is based on the cointegration and spatial market arbitrage opportunities inherent in agricultural commodity markets.
However, the type of threshold nonlinearity that we find generally does not support the strong restrictions implied by the transaction-cost view of commodity arbitrage.
