Arbitraging Price Differences Between Two Markets Is Generally Not Possible

question 49

Multiple Choice

Arbitraging price differences between two markets is generally not possible if:

• A) there are positive costs of transporting the products from one market to the other.
• B) the transportation costs are larger than the difference in prices.
• C) the government has prohibited exchange between the two markets.
• D) A and C above
• E) B and C above

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Definitions:

Superior Trial Court

A high-level court of law that has the authority to hear both civil and criminal cases, including appeals from lower courts.

Courts of Equity

Courts that decide cases on the basis of fairness and justice, applying principles of equity rather than strict legal rules.

Provincial Court

A provincial court is a lower-level court in Canada dealing with less serious criminal offences, family law matters, and other regulatory offences.

ADR

Alternative Dispute Resolution, a range of processes such as mediation and arbitration used to resolve disputes without going to court.