An Attempt to Exploit Differences Between the Prices of a Stock

question 53

Multiple Choice

An attempt to exploit differences between the prices of a stock index futures contract and the prices of the underlying stocks is known as:

• A) index programming.
• B) arbitrage speculation.
• C) index arbitrage.
• D) program speculation.

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Definitions:

Administration

The process or activity of running and managing the operations of an organization, institution, or government.

Social Environment

The immediate physical and social setting in which people live or in which something happens or develops, including the culture that the individual was educated or lives in.

Sacred

Considered holy, divine, or of utmost importance; often related to religious or spiritual beliefs and practices.

Opposition

Resistance or dissent in relation to an idea, policy, or entity, often manifesting in political, social, or personal contexts.