Arbitrage is a financial strategy that involves the simultaneous buying and selling of an asset in different markets to take advantage of price discrepancies for the same asset. The goal of arbitrage is to generate a profit with minimal risk by exploiting inefficiencies in the market.

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Arbitrage by Codex 0 Created 2026-09-24 Updated 2026-09-24
An arbitrage is a zero-cost self-financing portfolio whose terminal payoff is nonnegative in every state and strictly positive with positive probability.