Which of the Following Statements Regarding Arbitrage Is the Most

question 55

Multiple Choice

Which of the following statements regarding arbitrage is the most correct?

• A)Any situation in which it is possible to make a profit while taking on risk is known as an arbitrage opportunity.
• B)Any situation in which it is possible to make a profit by making an investment is known as an arbitrage opportunity.
• C)We call a competitive market in which there are no arbitrage opportunities an arbitrage market.
• D)The practice of buying and selling equivalent goods in different markets to take advantage of a price difference is known as arbitrage.

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