Cash- And- Carry Arbitrage Involves

question 54

Multiple Choice

Cash- and- carry arbitrage involves:

• A) buying in the options market and selling in the futures.
• B) buying in the cash market and selling in the forwards.
• C) buying in the forward market and selling in the futures.
• D) buying in the swaps market and selling in the cash market.

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Definitions:

Confounding Variable

An external variable that influences both the dependent and independent variables in an experiment, potentially skewing the results.

Independent Variable

In experimental research, the variable that is manipulated or changed to observe its effects on the dependent variable.

Dependent Variable

The outcome the researcher is interested in measuring.

Confounding Variable

An outside influence that changes the effect of a dependent and independent variable being examined in an experimental study, potentially skewing results.