You are correct. I was thinking the kind of arbitrage where people are offering a futures contract at a different price than the current price of the good (modulo the risk-free rate, storage costs and consumption of the good). Then they will be arbitraged and lose money for no good reason.
No, it’s really not. The entire point of arbitrage is multiple agents are involved.
You are correct. I was thinking the kind of arbitrage where people are offering a futures contract at a different price than the current price of the good (modulo the risk-free rate, storage costs and consumption of the good). Then they will be arbitraged and lose money for no good reason.