Walgreen Company (NYSE: WAG)is Currently Trading at $48

question 17

Multiple Choice

Walgreen Company (NYSE: WAG) is currently trading at $48.75 on the NYSE.Walgreen Company is also listed on NASDAQ and assume it is currently trading on NASDAQ at $48.50.Does an arbitrage opportunity exist and if so how would you exploit it and how much would you make on a block trade of 100 shares?

• A) No, no arbitrage opportunity exists
• B) Yes, buy on NASDAQ and sell on NYSE, make $25
• C) Yes, buy on NYSE and sell on NASDAQ, make $25
• D) Yes, buy on NASDAQ and sell on NYSE, make $250

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Definitions:

Air Tanks

Containers used in air brake systems to store compressed air and supply it to the brakes to facilitate stopping or control.

PM Service

Preventive Maintenance Service, a routine maintenance practice designed to keep vehicles running efficiently by preventing major issues before they occur.

S-cam Profile

A specific shape or contour of an S-cam, which is part of a drum brake system in large vehicles, responsible for transforming the motion of brake actuators into a force that applies the brakes.

Lithium-soap Grease

A type of lubricant made from lithium soap, known for its high resistance to water and its use in automotive and industrial applications to reduce friction and protect against corrosion.