The Process of Simultaneously Buying and Selling the Same or Equivalent

question 48

Multiple Choice

The process of simultaneously buying and selling the same or equivalent securities in different markets to take advantage of price differences and make a profit is called ____.

• A) option pricing
• B) diversification
• C) arbitrage
• D) margining

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Definitions:

Positive Reinforcer

A stimulus that, when presented after a behavior, increases the likelihood of that behavior occurring in the future.

Unconditioned Response

A natural, automatic action or feeling that occurs in response to a stimulus without prior learning or conditioning.

Punisher

An entity or stimulus that decreases the likelihood of a behavior recurring by administering an adverse response or outcome.

Negative Reinforcer

A stimulus whose removal after a behavior increases the likelihood of that behavior occurring again in the future.