Exam (elaborations)
FIN 370 Assignment 2: Question and Answer with Complete Solutions
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Arbitrage definition - Arbitrage is a trading activity in which an arbitrageur makes a sure profit without committing an initial investment or without committing any of the arbitrageur's own money. Finance "free lunch" situation - in finance, there is free lunch in the form of arbitrage, it does not last for any length of time. The trading activity of the arbitrageur cancels it pretty quickly. Three types of arbitrage - 1. Locational Arbitrage: Taking advantage of a mismatch in bid/ask between two banks
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FIN 370
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FIN 370
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