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.

---

Definitions:

Indirect Message

Communication that conveys information or intent not through direct statement but through suggestion or nuance.

Reader

An individual who engages with written text to extract information, enjoy literary works, or gain knowledge.

Defamation

The act of damaging someone’s reputation through false and malicious statements.

Reputation

The collective opinions or beliefs about an individual, organization, or brand, typically based on past actions or performance.