Arbitrage is a transaction that involves no negative cash flow at any probabilistic or temporal state and a positive cash flow in at least one state; in simple

Arbitrage is a transaction that involves no negative cash flow at any probabilistic or temporal state and a positive cash flow in at least one state; in simple terms, it is the possibility of a risk-free profit after transaction costs. https://en.wikipedia.org/wiki/Arbitrage https://en.wikipedia.org/wiki/Arbitrage There's no arbitrage for the factory taking a loan, it is just a business risk.