Arbitrage

In economics and finance, arbitrage (US /ˈɑːrbᵻtrɑːʒ/, UK /ˈɑːbᵻtrɪdʒ/, UK /ˌɑːbᵻtrˈɑːʒ/) is the practice of taking advantage of a price difference between two or more markets: striking a combination of matching deals that capitalize upon the imbalance, the profit being the difference between the market prices. When used by academics, an arbitrage is a transaction that involves no negative cash flow at any probabilistic or temporal state and a positive cash flow in at least one state; in simple terms, it is the possibility of a risk-free profit after transaction costs. For instance, an arbitrage is present when there is the opportunity to instantaneously buy low and sell high.

In principle and in academic use, an arbitrage is risk-free; in common use, as in statistical arbitrage, it may refer to expected profit, though losses may occur, and in practice, there are always risks in arbitrage, some minor (such as fluctuation of prices decreasing profit margins), some major (such as devaluation of a currency or derivative). In academic use, an arbitrage involves taking advantage of differences in price of a single asset or identical cash-flows; in common use, it is also used to refer to differences between similar assets (relative value or convergence trades), as in merger arbitrage.

Arbitrage (film)

Arbitrage is a 2012 American thriller drama film directed by Nicholas Jarecki and starring Richard Gere, Susan Sarandon, Tim Roth, and Brit Marling. Filming began in April 2011 in New York City. It opened in U.S. theaters in September 2012.

Plot

Sixty-year-old magnate Robert Miller (Richard Gere) manages a hedge fund with his daughter Brooke (Brit Marling) and is about to sell it for a handsome profit. However, unbeknownst to his daughter and most of his other employees, he has cooked his company's books in order to cover an investment loss and avoid being arrested for fraud. One night, while driving with his mistress Julie Cote (Laetitia Casta), he begins to doze off and crashes; Julie is killed. An injured Robert leaves the scene and decides to cover up his involvement to prevent the public, his wife Ellen (Susan Sarandon), and the prospective buyer James Mayfield (Graydon Carter) from discovering the truth.

Robert calls Jimmy Grant (Nate Parker), a twenty-three-year-old man from Harlem with a criminal record whom he helped get off the street in the past, and whose father had been Robert's driver for many years. After being driven home by Grant, Miller drags his injured body into bed at 4:30 am, arousing suspicion in his wife. The next day, he is questioned by police detective Bryer (Tim Roth). Bryer is keen on arresting Robert for manslaughter and begins to put the pieces together. Brooke discovers the financial irregularities, realizes that she could be implicated and confronts her father.