Quote:
Originally Posted by Archaea
some fundamental principles of arbitrage.
What are the fundamental assumptions? From what very little I know it involves the exchange of interest rates, but perhaps that's too simplistic.
Are there any good reads on the subject?
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When the two Stanford Nobel Economics winners put together Long Term Capital and raised billions to do arbitrages, I thought I might read what they had to say on the subject.
Before I could get to reading their stuff though they had lost billions and caused some real financial panics in the late 90's.
I then decided I would just resign myself to the fact that I could never figure it out.