Which One of the Following Terms Is Defined as the Strategy

question 74

Multiple Choice

Which one of the following terms is defined as the strategy of monitoring the futures price on a stock index in relation to the value of the underlying index to profit from any parity deviations?

• A)parity trading
• B)index trading
• C)program monitoring
• D)inverted arbitrage
• E)index arbitrage

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Definitions:

White Settlement

The establishment of communities in a new area by white people, often in regions previously or concurrently inhabited by Indigenous peoples or other ethnic groups.

Crop-Lien System

A form of credit extended to farmers, typically those who grew cotton, where future crops were used as collateral for loans to purchase supplies and land.

Debt

An obligation or liability to pay or render something to another party, which can be a result of borrowing funds or acquiring goods and services.

Crop-Lien System

A credit system used in the Southern United States after the Civil War, where farmers borrowed against future crop yields, leading to debt and economic dependency.