Arbitraged

why the divergence between berkshire hathaway a&b class shares?

admin — Wed, 11 Apr 2012 17:44:53 +0000

time to move to google asked:

curious as to why the A shares are outperforming B shares. i thought some arbitrage kept the shares in lockstep with each other, however, not only is that seemingly not the case, the A shares are advancing more than the B shares. i’d expect the opposite because the B shares have become more popular due to their accessibility and inclusion within the S&P 500.

What is a butterfly spread and why is it a debit spread?

admin — Wed, 04 Apr 2012 13:59:33 +0000

Thundercat asked:

I understand that a butterfly spread using call options is a debit spread. Why must it be a debit spread in order to be rational (i.e. no arbitrage). It seems that in order to be rational: the prem on earned on 2 calls at K2 must be less than the premium payed for calls at strike prices K1 and K2. Why is this?

Which of the following four hedge fund strategies would be most likely to include the other three strategies?

admin — Wed, 28 Mar 2012 07:56:33 +0000

Gags asked:

a. Merger arbitrage
b. Fixed income arbitrage
c. Relative value arbitrage
d. Convertible arbitrage

Ans Plz

Palm is currently trading at 5.93 after hours. HP is buying them for 5.70, is this an arbitrage opportunity?

admin — Sat, 18 Feb 2012 03:16:10 +0000

Mark asked:

If I short them at 5.93 and then wait for HP to buy my shares @ 5.70 will I make a $0.23 profit per share? Why is it trading above the offer?

How can you perform arbitrage (benefiting from pricing inefficiencies)?

admin — Tue, 27 Dec 2011 03:59:27 +0000

Alex G asked:

Could you provide concrete examples? Also, let’s say a stock trades on the NYSE and TSX (BNS for example), and the prices are apart by about .5%, could you perform arbitrage in this case, or am I getting the wrong idea? I mean how do you buy a stock or commodity and sell it on a whole different market where the stock/futures contract is not registered? Thanks a lot

Can you make yourself your own arbitrage betting in betfair?

admin — Fri, 18 Nov 2011 00:50:11 +0000

Bob G asked:

So…simply put if someone offers 2 as a bet – then will betfair allow me to specify my own opposing bt of 2.1?
I didn’t mean laying…and what if the first bet is already present? Anyway, thanks for the answer John.

Does sports arbitrage software actually work?

admin — Tue, 08 Nov 2011 18:21:12 +0000

Jerry asked:

I’ve been seeing these articles online about people making money from sports arbitrage software. Is this really possible, and is it very risky?

The primary reason for investing on an international basis is to:?

admin — Thu, 13 Oct 2011 08:45:33 +0000

Maria asked:

a.increase P/E ratios
b.increase arbitrage opportunities and potential profits
c.reduce portfolio risk through diversification
d.minimize taxable investment income

Who does stock arbitrage?

admin — Fri, 02 Sep 2011 18:55:47 +0000

Peter asked:

Do you know, or have you heard of anyone does arbitrage for a living? Can anyone do it? What kinds of information would someone need?

Monopolist pricing and quantity under arbitrage?

admin — Tue, 16 Aug 2011 09:12:14 +0000

xc30 asked:

If 2 goods sold in 2 markets with demand curves q1=200-p1 and q2=300-3p2
and total costs are C= 20q + 0.5q^2 where q is total output
if arbitrage is possible at no transportation cost, what is the optimal price and the quantities which sell in each market at the price?