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:

Financial Statement Information

Data presented in financial statements that provide insights into a company's financial health and performance.

Manufacturing Processes

The methods and operations involved in converting raw materials into finished goods.

Regulatory Groups

Organizations or bodies that create and enforce rules and regulations within specific industries.

Financial Instruments

Contracts that give rise to both a financial asset of one entity and a financial liability or equity instrument of another entity.