HomeDefinitionsCompareDebt Discount ArbitrageThe financial definition for Discount Arbitrage: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 maybuy a put at a discount and simultaneously buy the underlying security (basic put arbitrage). See also Discount. Similar MatchesArbitrage bondsArbitrage bondsMunicipality issued bonds issued intended to gain an interest rate advantage by refunding a higher-rate bond in ahead of their call date. Lower-rate refunding issue proceeds are invested in Treasuries until the first call date of the higher-rate issue. Arbitrage free option pricing modelsArbitrage free option pricing modelsYield curve option-pricing models. Arbitrage Trading Program (ATP)Arbitrage Trading Program (ATP)See: Program trading. Further SuggestionsArbitrageurConvertible Arbitrage Covered interest arbitrage Currency arbitrage Index arbitrage International arbitrage Locational arbitrage Click to compare definitions of Discount Arbitrage Click to view definitions beginning di |