Added: 11 months ago
From: khanacademy
Views: 16,131
Sort by time | Sort by thread (beta)

Link to this comment:

Share to:

All Comments (18)

Sign In or Sign Up now to post a comment!
  • youre the bomb

  • Awesome as a bright sunny day!!! Thanxie!!!

  • yeah - it's surely all about timing - if this guy fell of his bike he might spend the night in hospital by which time there may be a glut in market 1. He could also simply fall off his bike and the apples would get bruised!! It's a good example of exploiting price differentials but surely time is thew risk factor?

  • Entourage!

  • genius! thanks for the videos! 

  • Awesome, this is very clear. Thanks Sal. I have an exam coming up on a Harvard case. This will help me to crack the arbitrage related questions.

  • This and two other finance videos are the only ones I've "gotten" in terms of understanding. My friend is a broker, and he explained this and the two about simple & complex interest.

    Unfortunately, he's not always here and he won't help me w/ world trade exchange rates, b/c he doesn't like talking about it.

    I'm just glad I get this one.

  • You just crack up my friend whenever you say 'it's a fancy word, but a simple idea.'

    He has one of those FINRA things. IDK exactly what they're called. But I never even heard of the word until he showed me a card and said it means he's registered as a financial advisor. I just don't remember what FINRA stands for.

    I knew when he told me, though, b/c he defined every letter; but I only remember the first two for financial institute.

  • I wouldn't call it risk free. DEA is getting good at detecting heroin hiding spots.

  • thanks for this explanation! It's clear to see now one of the ways which the current system allows for manipulation for profit

  • thnx sal keep up great work!

  • Risk free assuming you don't wreak your bike while traveling. :)

  • @ChessNetwork

    or we assume no transaction costs :P

  • Comment removed

  • We learned about this in econ 101 and I never could grasp it - it makes so much sense now though, thanks Khan!

Loading...
Alert icon
0 / 00Unsaved Playlist Return to active list
    1. Your queue is empty. Add videos to your queue using this button:
      or sign in to load a different list.
    Loading...Loading...Saving...
    • Clear all videos from this list
    • Learn more