Loose Definition of Arbitrage: A trading strategy that earns something from nothing, no matter how the market evolves in the future. Arbitrage-free valuation is the value of an asset or financial instrument based solely on the real performance or cash flows that it generates.No-arbitrage pricing. Arbitrage pricing theory (APT) is an alternative to the capital asset pricing model (CAPM) for explaining returns of assets or portfolios. We have reviewed the Independent Auditor's Report of the City of Fairview Park, Cuyahoga. The notion that derivatives "complete" markets is closely related to the concept of "regulatory arbitrage. Suppose I have an egg that's selling for 10 cents. I have a carton of 12 eggs. We have audited, in accordance with the auditing standards generally accepted in the United States of. Corrigan stated that in the past, we had no formal policy about bereavement.