Suppose That the ETF Is Trading for $362

question 20

Multiple Choice

Suppose that the ETF is trading for $362.36;you should:

• A)sell the EFT and buy 2 shares of IBM,3 shares of MRK,and 3 shares of C.
• B)sell the EFT and buy 3 shares of IBM,2 shares of MRK,and 3 shares of C.
• C)buy the EFT and sell 2 shares of IBM,3 shares of MRK,and 3 shares of C.
• D)do nothing,no arbitrage opportunity exists.

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Definitions:

Organization Design

The process of structuring an organization's roles, responsibilities, and relationships to effectively achieve its goals.

Strategic Choice

Decision-making processes that consider the long-term goals and direction of an organization.

Authority Relationships

The structured interactions and power dynamics between individuals in positions of command and those who report to them within an organization.

Raw Materials

Basic substance in its natural, modified, or semi-processed state, used as an input to a production process for subsequent modification or transformation into a finished good.