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

question 37

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 the above.

Recognize the inefficiencies and legal implications of collusion and cartels in the U.S. economy.

Identify the historical context and evolution of oligopoly in the United States.

Understand the Nash equilibrium in the context of oligopoly behavior.

Explain the incentives for firms to cheat within a cartel.

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