Airbnb rental arbitrage is a low-risk, low investment business strategy for engaging in the short-term vacation rental industry. According to Merton's results, (Hodges, 1996) transferred the arbitrage constraints of option prices into implied volatility surface.An arbitrage opportunity is essentially when you can make a couple trades simultaneously to get away with a risk-free profit. Show that expected re- turns of discount bonds must satisfy specific restrictions to avoid arbitrage.