How To Teach Your Kids About Arbitrage
The other day, one of my kids came up to me and said, “Dad, I know that the Tooth Fairy doesn’t actually come into my room and take my tooth and put money under my pillow. Mom does it.”
And I said, “You are exactly right. Mom does take your tooth and she replaces it with a dollar. Then she gives that tooth to me, and I give the tooth to the Tooth Fairy. And the Tooth Fairy pays me $1 million dollars. That’s called arbitrage.”
What do you think?
Joseph