Arbitrage bonds allow municipalities to refinance high-interest bonds with lower-rate ones before the call date, optimizing debt costs and potentially boosting savings.
Conversion arbitrage is a risk-neutral strategy in options trading that exploits pricing inefficiencies in calls and puts. Learn how it uses put-call parity to uncover profit opportunities.
A spot rate is the current market price at which a stock, bond, commodity, or currency can be purchased or sold. A forward rate or forward price is a price set in advance between a buyer and a seller ...