Arbitrage is the simultaneous purchase and sale of the same asset in different markets in order to profit from a difference in its price. Arbitrage is when an asset (stocks, currencies, etc.) is bought in one market and sold in another for a higher price.(2) Application to the Department of Community Affairs –Pittsburgh National. Inventories Inventories are stated at the lower of cost (firstin, firstout basis) or market. Arbitrage is taking advantage in price differences to earn a profit. In this video we explore arbitrage opportunities in options markets. SEC regulations and arbitrage mean e.g.