Which One of the Following Is the Strategy of Earning

question 4

Multiple Choice

Which one of the following is the strategy of earning risk-free profits by taking advantage of any unusual differences between cash and futures prices?

• A)cash-futures arbitrage
• B)mark to market
• C)margin calling
• D)basis recognition
• E)cash spotting

---

Definitions:

Car Buyers

Consumers who are in the market to purchase a vehicle, representing a segment of the automotive market influenced by factors such as price, fuel efficiency, and brand loyalty.

Asymmetric Information

A situation where one party in a transaction has more or better information than the other, often leading to an imbalance in power or unfair advantage.

External Agency

An outside organization or group that provides services or support for another entity's objectives.

Equilibrium Price

The price at which the quantity of goods demanded by consumers equals the quantity of goods supplied by producers, leading to market stability.