Is the Following an Arbitrage Opportunity? a Security That Cost

question 13

Essay

Is the following an arbitrage opportunity? A security that cost zero and might pay a dollar in the future, but pays zero otherwise.

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Definitions:

Supervisors

Individuals who oversee and manage the work and performance of others in an organizational setting.

Capable

Having the ability, fitness, or quality necessary to do or achieve a specified thing.

Disillusionment

A feeling of disappointment resulting from the discovery that something is not as good as one believed it to be.

Empower

To grant authority or power to someone, enhancing their control over their own life and decisions.