Pure Arbitrage Trading Involves

question 69

Multiple Choice

Pure arbitrage trading involves

• A)buying blocks of securities in anticipation of some information release.
• B)purchase of stock in a company being acquired and the sale of stock in the acquiring company.
• C)exploitation of a difference between a company's current value and its estimated liquidation value.
• D)purchasing an asset in one market at one price and selling it immediately in another market at a higher price.

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Definitions:

Marginal Value

The additional benefit obtained from consuming or producing one more unit of a good or service.

Buffet

A serving system where food is placed in a public area, allowing diners to serve themselves.

Servings

Specific portions or quantities of food or drink, as determined for a recipe or diet.

Second Car

An additional vehicle owned by an individual or household, typically used as an alternative to the primary car.