If You Determine That the S&P 500 Index Futures Is

question 65

Multiple Choice

If you determine that the S&P 500 Index futures is overpriced relative to the spot S&P 500 Index, you could make an arbitrage profit by

• A)buying all the stocks in the S&P 500 and selling put options on the S&P 500 Index.
• B)selling short all the stocks in the S&P 500 and buying S&P Index futures.
• C)selling all the stocks in the S&P 500 and buying call options on the S&P 500 Index.
• D)selling S&P 500 Index futures and buying all the stocks in the S&P 500.
• E)None of the options

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Definitions:

Rail Position Sensing

Technology used to detect the exact position of a train on the tracks, crucial for safety and efficiency.

Power Management Electronics

Electronic systems designed to optimize the distribution and consumption of power within a vehicle, enhancing efficiency.

Voltage Spikes

Sudden increases in voltage significantly above the normal level for a short duration, potentially harmful to electrical components.

Transmission ECU

An electronic control unit responsible for managing the operation of a vehicle's transmission, ensuring optimal performance and fuel efficiency.