Authors :
Pranit Mahajan, Vinayak Jadhav, Yagnesh Salian
Volume/Issue :
Volume 5 - 2020, Issue 5 - May
Google Scholar :
http://bitly.ws/9nMw
Scribd :
https://bit.ly/2A7iIBK
Abstract :
Arbitrage is defined as near simultaneous
purchase and sale of securities or foreign exchange in
different markets in order to profit from price
discrepancies. Experts believe in the non-existence of
arbitrage in an efficient trade market. Arbitrage results
in a high profit in a short duration of time without the
need of hedging. Detection plays an important role
during an arbitrage as an investor who enters the
market early, makes the maximum profit. In our
experiment, A Bellman-Ford based model is used for
detecting the mis-pricing.
Keywords :
Arbitrage; Bellman-Ford; foreign exchange; hedging
Arbitrage is defined as near simultaneous
purchase and sale of securities or foreign exchange in
different markets in order to profit from price
discrepancies. Experts believe in the non-existence of
arbitrage in an efficient trade market. Arbitrage results
in a high profit in a short duration of time without the
need of hedging. Detection plays an important role
during an arbitrage as an investor who enters the
market early, makes the maximum profit. In our
experiment, A Bellman-Ford based model is used for
detecting the mis-pricing.
Keywords :
Arbitrage; Bellman-Ford; foreign exchange; hedging
