STSTEER

Arbitrage

Deciding whether a price gap between two locations is an arbitrage opportunity after transport costs, and its profit.

Question template

In Vancouver, sustainably sourced timber sells for price a. In Calgary, the same sustainably sourced timber sells for price b. The cost to transport the timber from Vancouver to Calgary is cost per unit. All prices and costs are in US dollars, and the same transport cost applies to shipping in either direction. Ignoring other transaction costs, is there an arbitrage opportunity, and what is the potential profit per unit?

Use it

from datasets import load_dataset
ds = load_dataset("narunraman/steer_me", "arbitrage")