# arbitrage

### arbitrage - How do different methods and techniques used in pairs trading compare?

Both models are based on a spread, which has to be as stationary / mean reverting as possible. $yt = \beta0 + \beta1 xt + \epsilon_t$ In pairs trading, $yt$ and $xt$ are log prices, and (e.g.) the... Read More

### options - Arbitrage opportunity interview question

A similar question for put option has been discussed in this question: Finding Arbitrage in two Puts. Basically, the call option payoff is a convex function of the strike. Then the call option price... Read More