Which of the Following Is an Example of 'Arbitrage

question 57

Multiple Choice

Which of the following is an example of 'arbitrage'?

• A)An investor, seeing that the price of palladium on the metals exchange in two different countries is slightly different, buys on one and sells on the other to make a profit.
• B)An inventor of a new hydrocarbon cracking technology based on palladium buys this metal knowing that its price will rise when the technology is adopted.
• C)A firm buys $250 000 of palladium today, with an option to sell it at $275 000 in one year if interest rates rise above 10%.
• D)A metals merchant is offered $108 000 in one year for $100 000 of palladium today, when the interest rate is 10%.

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Definitions:

Color Vision

The ability of the visual system to distinguish objects based on the wavelengths of the light they reflect, emit, or transmit.

Chemoreceptors

Sensory receptor cells or organs specialized in detecting chemical substances in the environment or the body.

Sensillum

Sensillum refers to any of various simple sensory organs or structures, especially in insects, for detecting changes in the environment.

Dendrites

Extensions of neurons that receive signals from other neurons or sensory inputs.