Understanding Arbitrage

Author : Randall Billingsley
Publisher : Pearson Education
Page : 243 pages
File Size : 46,7 Mb
Release : 2005-10-05
Category : Business & Economics
ISBN : 9780132716000

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Understanding Arbitrage by Randall Billingsley Pdf

Arbitrage is central both to corporate risk management and to a wide range of investment strategies. Thousands of financial executives, managers, and sophisticated investors want to understand it, but most books on arbitrage are far too abstract and technical to serve their needs. Billingsley addresses this untapped market with the first accessible and realistic guide to the concepts and modern practice of arbitrage. It relies on intuition, not advanced math: readers will find basic algebra sufficient to understand it and begin using its methods. The author starts with a lucid introduction to the fundamentals of arbitrage, including the Laws of One Price and One Expected Return. Using realistic examples, he shows how to identify assets and portfolios ripe for exploitation: mispriced commodities, securities, misvalued currencies; interest rate differences; and more. You'll learn how to establish relative prices between underlying stock, puts, calls, and 'riskless' securities like Treasury bills -- and how these techniques support derivatives pricing and hedging. Billingsley then illuminates options pricing, the heart of modern risk management and financial engineering. He concludes with an accessible introduction to the Nobel-winning Modigliani-Miller theory, and its use in analyzing capital structure.

Author : Robert Dubil
Publisher : John Wiley & Sons
Page : 344 pages
File Size : 43,8 Mb
Release : 2005-04-08
Category : Business & Economics
ISBN : 9780470012253

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An Arbitrage Guide to Financial Markets by Robert Dubil Pdf

An Arbitrage Guide to Financial Markets is the first book to explicitly show the linkages of markets for equities, currencies, fixed income and commodities. Using a unique structural approach, it dissects all markets the same way: into spot, forward and contingent dimensions, bringing out the simplicity and the commonalities of all markets. The book shuns stochastic calculus in favor of cash flow details of arbitrage trades. All math is simple, but there is lots of it. The book reflects the relative value mentality of an institutional trader seeking profit from misalignments of various market segments. The book is aimed at entrants into investment banking and dealing businesses, existing personnel in non-trading jobs, and people outside of the financial services industry trying to gain a view into what drives dealers in today’s highly integrated marketplace. A committed reader is guaranteed to leave with a deep understanding of all current issues. "This is an excellent introduction to the financial markets by an author with a strong academic approach and practical insights from trading experience. At a time when the proliferation of financial instruments and the increased use of sophisticated mathematics in their analysis, makes an introduction to financial markets intimidating to most, this book is very useful. It provides an insight into the core concepts across markets and uses mathematics at an accessible level. It equips readers to understand the fundamentals of markets, valuation and trading. I would highly recommend it to anyone looking to understand the essentials of successfully trading, structuring or using the entire range of financial instruments available today." —Varun Gosain, Principal, Constellation Capital Management, New York "Robert Dubil, drawing from his extensive prior trading experience, has made a significant contribution by writing an easy to understand book about the complex world of today’s financial markets, using basic mathematical concepts. The book is filled with insights and real life examples about how traders approach the market and is required reading for anyone with an interest in understanding markets or a career in trading." —George Handjinicolaou, Partner, Etolian Capital, New York "This book provides an excellent guide to the current state of the financial markets. It combines academic rigour with the author’s practical experience of the financial sector, giving both students and practitioners an insight into the arbitrage pricing mechanism." —Zenji Nakamura, Managing Director, Europe Fixed Income Division, Nomura International plc, London

Author : Keith M. Moore
Publisher : John Wiley & Sons
Page : 368 pages
File Size : 44,9 Mb
Release : 2018-04-04
Category : Business & Economics
ISBN : 9781118233856

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Risk Arbitrage by Keith M. Moore Pdf

The definitive guide to risk arbitrage, fully updated with new laws, cases, and techniques Risk Arbitrage is the definitive guide to the field and features a comprehensive overview of the theory, techniques, and tools that traders and risk managers need to be effective. This new edition is completely updated and fully revised to reflect the changes to laws and technology and includes new case studies and a detailed discussion of computer-based trading systems. Readers gain deep insight into the factors and policies that affect merger transactions, and the new developments that allow individuals to compete with professionals in managing risk arbitrage portfolios. The book provides techniques for computing spreads and determining risk, with practice exercises that allow readers to become confident with new methods before using them professionally. The current wave of corporate mergers, acquisitions, restructurings, and similar transactions has created unprecedented opportunities for those versed in contemporary risk arbitrage techniques. At the same time, the nature of the current merger wave has lent such transactions a much higher degree of predictability than ever before, making risk arbitrage more attractive to all types of investors. Risk Arbitrage provides the essential guidance needed to participate in the business. Get up to date on the most recent developments in risk arbitrage Examine new mergers and the legal changes that affect them Learn how computers and trading systems have affected competition Use the tools that enable risk determination and spread computation Both the growth in hedge funds and the changing nature of the merger and acquisition business have affected risk arbitrage processes and techniques. For the finance professional who needs expert guidance and the latest information, Risk Arbitrage is a comprehensive guide.

Author : Billingsley
Publisher : Unknown
Page : 225 pages
File Size : 48,8 Mb
Release : 2005
Category : Electronic
ISBN : 8131738396

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Understanding Arbitrage by Billingsley Pdf

Author : Stephane Reverre
Publisher : McGraw Hill Professional
Page : 508 pages
File Size : 50,7 Mb
Release : 2001-05-21
Category : Business & Economics
ISBN : 9780071381246

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The Complete Arbitrage Deskbook by Stephane Reverre Pdf

The Complete Arbitrage Deskbook explains every aspect of the types, instruments, trading practices, and opportunities of modern equity arbitrage. It travels beyond U.S. borders to examine the worldwide opportunities inherent in arbitrage activities and demonstrates how to understand and practice equity arbitrage in the global professional environment. Written specifically for traders, risk managers, brokers, regulators, and anyone looking for a comprehensive overview of the field of equity arbitrage, this groundbreaking reference provides:  Details of the financial instruments used in equity arbitrage—stocks, futures, money markets, and indices  Explanations of financial valuation and risk analysis, tailored to the characteristics of the underlying position and market environment  Examples of actual arbitrage situations—presenting a real-life snapshot of equity arbitrage in action The Complete Arbitrage Deskbook is the only book to combine operational details with practical analysis of modern equity arbitrage. Concise in explanation yet comprehensive in scope, it provides an integrated overview of both the practices and the possibilities of the modern equity arbitrage marketplace.

Author : Nick P. Calamos
Publisher : John Wiley & Sons
Page : 306 pages
File Size : 49,6 Mb
Release : 2011-01-19
Category : Business & Economics
ISBN : 9781118045664

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Convertible Arbitrage by Nick P. Calamos Pdf

Minimize risk and maximize profits with convertible arbitrage Convertible arbitrage involves purchasing a portfolio of convertible securities-generally convertible bonds-and hedging a portion of the equity risk by selling short the underlying common stock. This increasingly popular strategy, which is especially useful during times of market volatility, allows individuals to increase their returns while decreasing their risks. Convertible Arbitrage offers a thorough explanation of this unique investment strategy. Filled with in-depth insights from an expert in the field, this comprehensive guide explores a wide range of convertible topics. Readers will be introduced to a variety of models for convertible analysis, "the Greeks," as well as the full range of hedges, including titled and leveraged hedges, as well as swaps, nontraditional hedges, and option hedging. They will also gain a firm understanding of alternative convertible structures, the use of foreign convertibles in hedging, risk management at the portfolio level, and trading and hedging risks. Convertible Arbitrage eliminates any confusion by clearly differentiating convertible arbitrage strategy from other hedging techniques such as long-short equity, merger and acquisition arbitrage, and fixed-income arbitrage. Nick Calamos (Naperville, IL) oversees research and portfolio management for Calamos Asset Management, Inc. Since 1983 his experience has centered on convertible securities investment. He received his undergraduate degree in economics from Southern Illinois University and an MS in finance from Northern Illinois University.

Author : Alireza Javaheri
Publisher : John Wiley & Sons
Page : 222 pages
File Size : 54,6 Mb
Release : 2011-08-24
Category : Business & Economics
ISBN : 9781118161029

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Inside Volatility Arbitrage by Alireza Javaheri Pdf

Today?s traders want to know when volatility is a sign that the sky is falling (and they should stay out of the market), and when it is a sign of a possible trading opportunity. Inside Volatility Arbitrage can help them do this. Author and financial expert Alireza Javaheri uses the classic approach to evaluating volatility -- time series and financial econometrics -- in a way that he believes is superior to methods presently used by market participants. He also suggests that there may be "skewness" trading opportunities that can be used to trade the markets more profitably. Filled with in-depth insight and expert advice, Inside Volatility Arbitrage will help traders discover when "skewness" may present valuable trading opportunities as well as why it can be so profitable.

Author : Robert Dubil
Publisher : John Wiley & Sons
Page : 379 pages
File Size : 43,5 Mb
Release : 2011-10-13
Category : Business & Economics
ISBN : 9781119950639

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Financial Engineering and Arbitrage in the Financial Markets by Robert Dubil Pdf

A whole is worth the sum of its parts. Even the most complex structured bond, credit arbitrage strategy or hedge trade can be broken down into its component parts, and if we understand the elemental components, we can then value the whole as the sum of its parts. We can quantify the risk that is hedged and the risk that is left as the residual exposure. If we learn to view all financial trades and securities as engineered packages of building blocks, then we can analyze in which structures some parts may be cheap and some may be rich. It is this relative value arbitrage principle that drives all modern trading and investment. This book is an easy-to-understand guide to the complex world of today’s financial markets teaching you what money and capital markets are about through a sequence of arbitrage-based numerical illustrations and exercises enriched with institutional detail. Filled with insights and real life examples from the trading floor, it is essential reading for anyone starting out in trading. Using a unique structural approach to teaching the mechanics of financial markets, the book dissects markets into their common building blocks: spot (cash), forward/futures, and contingent (options) transactions. After explaining how each of these is valued and settled, it exploits the structural uniformity across all markets to introduce the difficult subjects of financially engineered products and complex derivatives. The book avoids stochastic calculus in favour of numeric cash flow calculations, present value tables, and diagrams, explaining options, swaps and credit derivatives without any use of differential equations.

Author : Carolyn Hardin
Publisher : Duke University Press
Page : 117 pages
File Size : 49,7 Mb
Release : 2021-07-09
Category : Business & Economics
ISBN : 9781478021605

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Capturing Finance by Carolyn Hardin Pdf

Arbitrage—the trading practice that involves buying assets in one market at a cheap price and immediately selling them in another market for a profit—is fundamental to the practice of financial trading and economic understandings of how financial markets function. Because traders complete transactions quickly and use other people's money, arbitrage is considered to be riskless. Yet, despite the rhetoric of riskless trading, the arbitrage in mortgage-backed securities led to the 2008 financial crisis. In Capturing Finance Carolyn Hardin offers a new way of understanding arbitrage as a means for capturing value in financial capitalism. She shows how arbitrage relies on a system of abstract domination built around risk. The commonsense beliefs that taking on debt is necessary for affording everyday life and that investing is necessary to secure retirement income compel individuals to assume risk while financial institutions amass profits. Hardin insists that mitigating financial capitalism's worst consequences, such as perpetuating class and racial inequities, requires challenging the narratives that naturalize risk as a necessary element of financial capitalism as well as social life writ large.

Author : Chris Green
Publisher : Unknown
Page : 276 pages
File Size : 43,6 Mb
Release : 2012-09-13
Category : Arbitrage
ISBN : 1478251891

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Arbitrage by Chris Green Pdf

Questions about Amazon, FBA, arbitrage, or selling online? You can call (yes, CALL!) the author, Chris Green (or send a text if that's your thing). Phone number is included in this book. Arbitrage is the practice of taking advantage of a price difference between two or more markets, striking a combination of matching deals that capitalize upon the imbalance, the profit being the difference between the market prices. This is the complete, authoritative, and exhaustive manual outlining the Arbitrage business model. It has been compiled and made available to anyone interested in buying products to be resold online. In this book, Chris Green will give you the keys to the Arbitrage Kingdom with the mindset of unlimited opportunities and abundance and not one of scarcity. Empires are being built by using powerful new programs like ScanPower to source and evaluate items for resale. Pair this with Amazon's amazing fulfillment program called Fulfillment By Amazon (FBA) to outsource the storage, shipping, and customer service of your items, and you have a completely scalable, nearly risk-free business model with a near-zero entry cost. The techniques described in this book can be used by anyone, anywhere to build a small side business or large empire. The only limit is you imagination.

Author : United States. Internal Revenue Service
Publisher : Unknown
Page : 194 pages
File Size : 42,9 Mb
Release : 1969
Category : Electronic
ISBN : OSU:32437122655356

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Technical Information Release by United States. Internal Revenue Service Pdf

Author : Angelo Corelli
Publisher : Emerald Group Publishing
Page : 579 pages
File Size : 40,9 Mb
Release : 2024-05-27
Category : Business & Economics
ISBN : 9781837532520

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Understanding Financial Risk Management by Angelo Corelli Pdf

Financial risk management is a topic of primary importance in financial markets. It is important to learn how to measure and control risk, how to be primed for the opportunity of compensative return, and how to avoid useless exposure.

Author : Thomas Kirchner
Publisher : John Wiley & Sons
Page : 371 pages
File Size : 52,9 Mb
Release : 2009-07-01
Category : Business & Economics
ISBN : 9780470508114

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Merger Arbitrage by Thomas Kirchner Pdf

A detailed look at an important hedge fund strategy Written by a fund manager who invests solely in merger arbitrage, also referred to as risk arbitrage, and other event-driven strategies, Merger Arbitrage is the definitive book on how this alternative hedge fund strategy works. Initial chapters are dedicated to the ins and outs of the strategy–cash mergers versus stock for stock mergers, legal aspects of mergers, and pitfalls of the merger process–while later chapters focus on giving the reader sound advice for integrating merger arbitrage into an investment portfolio. Merger Arbitrage helps readers understand leverage and options, shorting stocks, and legal aspects of merger arbitrage, including seeking appraisal or filing lawsuits for inadequate merger consideration. For those looking to gain an edge in the merger arbitrage arena, this book has everything they need to succeed. Thomas F. Kirchner, CFA (New York, NY), is the founder and portfolio manager of Pennsylvania Avenue Funds (www.pennavefunds.com), which invests in merger arbitrage and other event-driven strategies.

Author : Vicky Tsilas,Kimberly C. Betterton
Publisher : American Bar Association
Page : 0 pages
File Size : 48,6 Mb
Release : 2018
Category : Law
ISBN : 1641050624

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ABCs of Arbitrage by Vicky Tsilas,Kimberly C. Betterton Pdf

The ABCs of Arbitrage 2018 translates extraordinary complex information into terms that everyone from the consummate tax professional to beginners can easily understand.

Author : Tomas Björk
Publisher : OUP Oxford
Page : 600 pages
File Size : 50,6 Mb
Release : 2009-08-06
Category : Business & Economics
ISBN : 9780191610295

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Arbitrage Theory in Continuous Time by Tomas Björk Pdf

The third edition of this popular introduction to the classical underpinnings of the mathematics behind finance continues to combine sound mathematical principles with economic applications. Concentrating on the probabilistic theory of continuous arbitrage pricing of financial derivatives, including stochastic optimal control theory and Merton's fund separation theory, the book is designed for graduate students and combines necessary mathematical background with a solid economic focus. It includes a solved example for every new technique presented, contains numerous exercises, and suggests further reading in each chapter. In this substantially extended new edition Bjork has added separate and complete chapters on the martingale approach to optimal investment problems, optimal stopping theory with applications to American options, and positive interest models and their connection to potential theory and stochastic discount factors. More advanced areas of study are clearly marked to help students and teachers use the book as it suits their needs.