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 the act of taking advantage of a price difference in two different markets.In addition, the net present value savings must exceed any negative arbitrage associated with the refunding, subject to the CFO's discretion. Arbitrage is taking advantage in price differences to earn a profit. In this video we explore arbitrage opportunities in options markets. Arbitrage is the strategy of taking advantage of price differences in different markets for the same asset. For example, an arbitrage opportunity is present when there is the possibility to instantaneously buy something for a low price and sell it for a higher price.