Arbitrage
"When Cyrus Field finally succeeded in joining Europe and America by cable in 1866, international arbitrage of securities was made possible. Although American securities had been purchased in considerable volume abroad after 1800, the lack of quick communication placed a definite limit on the amount of active trading in securities between London and the New York markets. But even though the facilities of the cable were availiable, the business of securities arbitrage was somewhat slow in developing. At the outbreak of the World War it had reached fair proportions when arbitrage activities were suspended."
The book is interesting read 241 pages.
Henry Deutsch 1910 is another interesting book titled "Arbitrage" 232 pages, describing put-call parity and arbitrage in a series of securities.
Ernest Brown Skinner 1913 one of my favorite books "The Mathematical Theory of Investments" basically a formula collection 245 pages, describing all types of basic interest rate compounding, discounting, annuities, basic probabilities etc.
Nelson 1904, "The A B C of Option Arbitrage" describes the put-call parity, market neutral delta hedging for atm options, and almost all options in London at that time was issued atm.
The academics re-discovered put-call parity delta hedging and many other principles of arbitrage and trading around 1970s....they ignored the past. They did not miss out of a single source, but of a whole series of sources, the irony is some of the same academics claim other do not cite. You have to cite every paper published in Journal A, but what arbitrage traders and researchers published in books and Journal B long before them is not important....
