# Questions tagged [arbitrage]

The simultaneous purchase and sale of a financial security in order to profit from the difference in the security price during the trading activity.

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### Black-Scholes pricing of european call option

I am really confused on the usage of the greeks and the Black-Scholes model for option pricing. To gain some more understanding I am attempting to see if I can price a european call option under the ...
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### No unique no-arbitrage price when the stock price can remain unchanged

In a 1-period binomial model, with initial stock price 100, if the stock price is either 50,100, or 150 after 1 period then how can I show there is no longer a unique no-arbitrage price for a European ...
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### Bond arbitrage in practice

If we have the following term structure for riskless bonds: \begin{array} {|c|c|} \hline \text{Maturity} & \text{\$1 Zero-Bond price}\\ \hline \text{0 years} & \$ 1.00 \\ \hline \text{1 years}...
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### Arbitrage strategy one-period model

Consider a one-period model with a stock $S_0=1$ and $S_1>0$. Introduce call options with strikes $K_1<K_2<K_3$ maturing at $T=1$. Assume further that $$C(K_2)>\frac12(C(K_1)+C(K_3))$$ ...
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### Tutorial for working with tick data? [closed]

Can you recommend a good tutorial for working with tick data for the purpose of algorithmic trading? Is the data normally stored in a database and only bits are read into memory at a time? Is there ...