Given the Following Data,a Suitable Arbitrage Opportunity for an Investor

question 11

Multiple Choice

Given the following data,a suitable arbitrage opportunity for an investor with a 2% share in Company L would be to:

• A)sell 1% shares in L,borrow on personal account and invest in shares of L.
• B)borrow on personal account and buy more shares in L.
• C)sell shares in L and buy 2% shares in U.
• D)sell shares in L and buy 1% shares in U.

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Definitions:

Helping Behaviour

Actions taken to assist others without the expectation of reward or compensation, often motivated by empathy or moral values.

Emergency

A serious, unexpected, and often dangerous situation that requires immediate action.

Unforeseen

Referring to events or outcomes that were not predicted or expected, often leading to unexpected challenges or opportunities.

Danger

The possibility of harm, injury, or adverse consequences.