Which of the Following Statements Regarding Arbitrage Is the Most

question 79

Multiple Choice

Which of the following statements regarding arbitrage is the most correct?

• A)Any situation in which it is possible to make a profit without taking any risk is known as an arbitrage opportunity.
• B)Any situation in which it is possible to make a profit without making any investment is known as an arbitrage opportunity.
• C)We call a competitive market in which there are no arbitrage opportunities an arbitrage market.
• D)The practice of buying and selling equivalent goods in different markets to take advantage of a price difference is known as arbitrage.

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Definitions:

Substitutes

Products or services that can replace each other in use, causing the demand for one to increase when the price of the other rises.

Complements

Goods or services that are used together with another, such that the demand for one increases when the price of the other decreases.

Video Games

Electronic games played through the use of computers, consoles, or other devices, often involving interactive and multimedia elements.

E-books

Digital formats of written content that can be read on computers, e-readers, or other electronic devices.