Neoclassical financial models provide the foundation for our understanding of finance. This chapter introduces the main ideas of neoclassical finance in a single-period context that avoids the technical difficulties of continuous-time models, but preserves the principal intuitions of the...

Tightening mutual fund regulations, particularly those of debt mutual funds, by the Indian securities market regulator – the Securities and Exchange Board of India (SEBI) are making Arbitrage funds get attention. Low risk, attractive tax treatment, and convenience caught investor interest, and...

Finally, I further explore the topic of ETF competition in the context of arbitrage. Three perfectly substitutable ETFs compete on the gold market. They all adjust to the daily gold fixing price, therefore never diverging significantly from each other. This constitutes an ideal setting for a...