If a Stock Index Futures Contract Is Overpriced,you Would Exploit

question 35

Multiple Choice

If a stock index futures contract is overpriced,you would exploit this situation by:

• A) Selling both the stock index futures and the stocks in the index.
• B) Selling the stock index futures and simultaneously buying the stocks in the index.
• C) Buying both the stock index futures and the stocks in the index.
• D) Buying the stock index futures and selling the stocks in the index.
• E) None of these.

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Definitions:

Pretranscriptional Control

Regulatory mechanisms that act before the transcription process in gene expression to modulate the efficiency and rate at which genes are transcribed.

Methylation

A biochemical process that involves the addition of a methyl group to molecules like DNA, affecting their function and activity.

Chromatin Packing

The process of winding DNA around histone proteins to compact it into structural units known as nucleosomes, which further fold to form chromosomes.

Proto-oncogene

A normal gene that can become an oncogene due to mutations or increased expression, potentially leading to cancer.