An Attempt to Exploit the Differences Between the Prices of a Stock

question 15

Multiple Choice

An attempt to exploit the differences between the prices of a stock index future and the prices of a stock index is known as:

• A)index programming.
• B)arbitrage speculation.
• C)index arbitrage.
• D)program speculation.

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Definitions:

Conditional Contract

An agreement that becomes enforceable only under specified conditions.

Assignment

The transfer of rights, duties, or property from one party to another, often used in the context of contracts or real property.

Stop Payment

An instruction given to a bank by an account holder not to pay a check or payment that has been issued but not yet cashed.

Cheque

A written, dated, and signed instrument that directs a bank to pay a specific sum of money to the bearer or a named party.