See Also: Discount arbitrage(finance)
Discount Arbitrage(money)
Tight money or dear money(finance)
Tax arbitrage(finance)
Tax arbitrage(money)
arbitrage(encyclopedia)
arbitrage(dictionary)
Arbitrage(finance)
NAV Arbitrage(money)
Arbitrage(money)

Discount Arbitrage (money)


Definition: [crh] A 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 may buy a put at a discount and simultaneously buy the underlying security (basicDefinition: put arbitrage). See also Discount.