Which of the Following Statements Is True

question 14

Multiple Choice

Which of the following statements is true?

• A) Pure arbitrage involves buying blocks of securities in anticipation of some information release.
• B) Risk arbitrage involves buying an asset in one market at one price and selling it immediately in another market at a higher price.
• C) Pure arbitrage involves buying blocks of securities in anticipation of some information release, risk arbitrage involves buying an asset in one market at one price and selling it immediately in another market at a higher price and program trading is associated with seeking a pure arbitrage between a cash market price and the futures market price of that instrument.
• D) None of the listed options are correct.

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Definitions:

Tax Burden

The total amount of taxes that individuals or businesses must pay, often considered in relation to their income or profits.

Payroll Tax

Obligatory payments required from employers or employees, usually expressed as a proportion of the salaries employees receive.

Tax Burden

The total amount of taxes paid by individuals or businesses, expressed as a percentage of income or revenue, indicating the financial impact of taxation.

Payroll Tax

Taxes imposed on employers and/or employees, typically based on the wages or salaries paid, to fund social security and healthcare programs.