Arbitrage spreads involve buying and selling related securities to profit from price discrepancies. Examples include: Merger Arbitrage: Buying the target company's stock and shorting the acquiring company's stock. Intermarket Spread:…

A box spread is an options strategy that involves buying a bull call spread and a bear put spread on the same underlying asset. It’s a risk-free arbitrage trade when…

A butterfly spread is an options strategy involving: Buying one option at a lower strike price. Selling two options at a middle strike price. Buying one option at a higher…