Which of the Following Represents an Arbitrage Transaction

question 114

Multiple Choice

Which of the following represents an arbitrage transaction?

• A) Traders buy silks where they are abundant and cheap, and haul them along a trail to another place where they would be quite scarce and valued.
• B) A trader buys a block of government bonds in one market where it is temporarily priced below where it can be immediately resold in a different market.
• C) Someone buys a block of Final Four tickets and scalp them at the game.
• D) A senior citizen buys a block of theater tickets at a senior discount and scalps them to teenagers behind the theater.
• E) All of the above are example of arbitrage.

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Definitions:

Sequential

Relating to or forming a sequence, where things follow a logical order or a fixed series.

Programmed

Describes tasks or decisions that follow a predetermined procedure or set of rules, often automated through technology.

Semiprogrammed

Decisions that have some elements of uncertainty and require a mix of established procedures and creative solutions.

Nonlinear

Nonlinear describes processes or relationships that do not follow a straight line or proportionality, showing complex dependencies.