Clearly, LTCM's trading involved risk. It is therefore, tempting to conclude that what LTCM did although it was unquestionably "arbitrage" in financial-market usage of the term was not arbitrage as it is conceived within finance theory. However, LTCM's index option positions were quite close to the arbitrage that finance theory posits as imposing Black-Scholes option pricing.

Donald MacKenzie, An Engine, Not a Camera, loc. 1002