Discount Arbitrage is a riskless arbitrage in which a discount option is purchased and an opposite position is taken in the underlying security. The arbitrageur may either buy a call at a discount and simultaneously sell the underlying security (basic call arbitrage) or may buy a put at a discount and simultaneously buy the underlying security (basic put arbitrage). See also Discount.
Barry Goldsmith
| APA | Barry Goldsmith. (2010). discount arbitrage. Retrieved September 21, 2026, from http://smartdefine.org/discount_arbitrage/definitions/1152108 |
| Chicago | Barry Goldsmith. 2010. "discount arbitrage" http://smartdefine.org/discount_arbitrage/definitions/1152108 (accessed September 21, 2026). |
| Harvard | Barry Goldsmith 2010, discount arbitrage, Smart Define, viewed 21 September, 2026, <http://smartdefine.org/discount_arbitrage/definitions/1152108>. |
| MLA | Barry Goldsmith. "discount arbitrage" 21 October 2010. Web. 21 September 2026. <http://smartdefine.org/discount_arbitrage/definitions/1152108> |