If You Determine That the S&P 500 Index Futures Is

question 11

Multiple Choice

If you determine that the S&P 500 Index futures is overpriced relative to the spot S&P 500 Index, you could make an arbitrage profit by

• A)buying all the stocks in the S&P 500 and selling put options on the S&P 500 Index.
• B)selling short all the stocks in the S&P 500 and buying S&P Index futures.
• C)selling all the stocks in the S&P 500 and buying call options on the S&P 500 Index.
• D)selling S&P 500 Index futures and buying all the stocks in the S&P 500.

---

Definitions:

Needs Analysis

This involves determining and addressing the needs between current conditions and desired conditions, often used in organizational training, project management, or product development contexts.

Training Program

A structured course of activities designed to develop and enhance skills, knowledge, and competencies in an individual or a group.

Outsourced Training

The practice of hiring external entities to conduct training programs for an organization’s employees.

Internal Recruiting

The process of filling job vacancies within an organization by considering current employees for promotion or transfer.