Discuss the definition of arbitrage, how it relates to economics, and it's importance. Arbitrage is the simultaneous purchase and sale of the same asset in different markets in order to profit from a difference in its price.Use futures and spot relationship to find an arbitrage opportunity. Once the property owner has filled out and submitted a permit, the city has the right to approve or deny the application. 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. Hennepin County was incorporated in 1852.