arbitrage
RSS arbitrageStochastic Implied Trees: Arbitrage Pricing with Stochastic Term and Strike Structure of Volatility
White Paper In this paper we present an arbitrage pricing framework for valuing and hedging contingent equity index claims in the presence of a stochastic term and strike structure of volatility. Starting from an initial set of index options prices and their... [24 Feb 2004]
Arbitrage Spreads and the Market Pricing of Proposed Acquisitions
White Paper This paper examines arbitrage spreads and returns following acquisition announcements in 362 cash tender offers spanning the 1981-1995 period. Arbitrage spreads in acquisitions, defined as the percentage difference between the bid price and market... [24 Feb 2004]
Nonlinear Taxation, Tax Arbitrage and Equilibrium Asset Prices
White Paper This paper investigates the equilibrium implications of the presence of nonlinearly taxed, redundant securities, and of the resulting tax arbitrage opportunities. Unlike the bulk of the existing tax arbitrage literature, but consistent with... [24 Feb 2004]
Takeovers, Freezeouts and Risk Arbitrage
White Paper Similarly, the takeover premium is also largely unrelated to the bidder’s ability to dilute the target’s shareholders after the acquisition, also due to potential arbitrage activity. This paper develops a dynamic model of tender offers in which... [24 Feb 2004]
Does Arbitrage Flatten Demand Curves for Stocks?
White Paper In theory, demand curves for stocks are kept flat by risk-less arbitrage between perfect substitutes. The risk inherent in arbitrage between imperfect substitutes may deter risk-averse arbitrageurs from flattening demand curves. [24 Feb 2004]
India's offshore advantage to last for 30 years
News The labour arbitrage advantage India has over the UK will last for at least another 30 years, while India will also retain its low-cost wage advantage over the US for at least another 18 years, according to the report. [26 May 2006]
Fixed-income electronic trading faces bleak 2008
Comment In contrast to equities, fixed-income markets provide no opportunities for arbitrage - the simultaneous purchase and sale of the same securities in different markets to profit from unequal prices - because the securities are seldom quoted on... [30 Jan 2008]
Offshoring - not just about the costs
Comment This was all about a determined corporate vision, global in its reach - certainly not about a simple offshore code sweatshop rooted in labour arbitrage. Labour arbitrage is clearly one driver - but with predictions of a shortfall of 20 to 40 per... [18 Feb 2008]
Offshore Indian outsourcer to open London facility
News It is not just about cost arbitrage, it is about brains arbitrage, where can I get the best talent for my money. Offshore outsourcer Cognizant hopes to add up to 20,000 staff to its books this year, including 100 at a new onshore UK facility. [29 Feb 2008]
HSBC ramps up Indian outsourcing presence
News Speaking to the Indian media after a meeting with West Bengal government ministers she said: "India definitely gives us a labour arbitrage when compared with developed countries. However, with increasing cost of employment across all sectors, we... [24 Nov 2006]
Extended Engineering: A New Perspective on Offshore Product Engineering
White Paper This was mainly fueled by technology product companies taking advantage of a rich technical pool of engineers with a definite cost arbitrage. A silent revolution has been going on in Product Design & Engineering Outsourcing. [26 Jul 2005]
Jump-Diffusion Term Structure and Ito Conditional Moment Generator
White Paper This paper implements a Multivariate Weighted Nonlinear Least Square estimator for a class of jump-diffusion interest rate processes (MWNLS-JD), which also admit closed-form solutions to bond prices under a no-arbitrage argument. [29 Jun 2005]
A Simple Solution to a Bandwidth Pricing Anomaly
White Paper Chiu and Crametz examine two 'no-arbitrage' relationships that must hold in a liquid bandwidth market: temporal and geographical. There is a current trend towards turning bandwidth into a commodity, with standardized contracts traded on exchanges. [07 Apr 2005]
Brochure: WebSphere MQ delivers real value today and tomorrow
White Paper A trader initiates an intricate sequence of moves in a complex arbitrage strategy What do these activities have in common? A customer uses an ATM to make a transfer of money A supplier pulls the latest specifications out of a manufacturer's bill of... [18 Feb 2008]
F&A Outsourcing Providers Discover Competitive Advantage With Real-Time Transaction Inspection
White Paper In addition, costs keep escalating in offshore locations, diminishing some benefits of labor arbitrage. Business Process Outsourcing (BPO) service providers specializing in Finance and Accounting (F&A) see a growing market opportunity but already... [11 Mar 2008]
