Wednesday, November 3, 2010

Ethanol "Wine market arbitrage of the day"

Not exactly an arb (simultaneity* and all that) but I like the idea.
Lifted from Felix Salmon:
Price of 2009 en primeur Chateau Lafite in New York, per case: $17,000
Price of shipping a case of Chateau Lafite from New York to Hong Kong: $40
Price of 2009 en primeur Chateau Lafite in Hong Kong, per case: $70,000
*Try pitching this to your risk manager:
In physics, the relativity of simultaneity is the concept that simultaneity—whether two events occur at the same time—is not absolute, but depends on the observer's reference frame.
According to the special theory of relativity, it is impossible to say in an absolute sense whether two events occur at the same time if those events are separated in space....
-from Wikipedia's Relativity of simultaneity entry.