If a Stock Index Futures Contract Is Overpriced, You Would

question 52

Multiple Choice

If a stock index futures contract is overpriced, you would exploit this situation by

• A) selling both the stock index futures and the stocks in the index.
• B) selling the stock index futures and simultaneously buying the stocks in the index.
• C) buying both the stock index futures and the stocks in the index.
• D) buying the stock index futures and selling the stocks in the index.
• E) None of the options are correct.

Develop an understanding of how to create a detailed work plan and its critical elements.

Understand the principles and importance of credibility in persuasive communication.

Identify the effective main idea in persuasive messages.

Recognize different types of messages and their purposes, particularly persuasive messages.

---

Definitions:

Milgram Experiment

A psychological experiment conducted by Stanley Milgram in the 1960s to study obedience to authority, where participants were instructed to administer electric shocks to another person.

Stanford University Prison Experiment

A psychological study conducted by Philip Zimbardo in 1971 at Stanford University, where students were assigned roles of prisoners and guards to explore the effects of perceived power.

Generalization

Drawing a conclusion about a certain characteristic of a population based on a sample from it.

Logical Support

The provision of reasons or evidence to justify a claim or argument.