Cross-venue arbitrage on a binary event
Two prediction venues each trade a contract on the same yes/no event (say, "will the central bank cut rates this month"). Each contract pays \1$0$0.47$0.48$.
Can you lock in a profit? How many of each do you buy, and what is the return?
Show a hint
Buying one YES and one NO guarantees exactly \1$ back. Compare that to what the pair costs.
Your answer
This one is open-ended. Work it through, then check your reasoning against the full solution.