Arbitrage funds are mutual funds that exploit price differences between cash and derivatives markets. They buy stocks in the cash market and sell equivalent stock futures in the derivatives market.

Conversion arbitrage is a risk-neutral strategy in options trading that exploits pricing inefficiencies in calls and puts.

In this episode of Alternative Angles, Fidelity Portfolio Manager Niraj Gupta and Host Steve Rosen explore the intricate world of merger arbitrage—a strategy focused on capturing returns from ...