What Is the Primary Difference Between Speculation and Arbitrage in the Foreign

question 46

Multiple Choice

What is the primary difference between speculation and arbitrage in the foreign exchange market?

• A)They are fundamentally the same transaction
• B)Arbitrage involves transactions separated by time,while speculative transactions take place in concurrent markets
• C)Speculation is risk free,arbitrage is not
• D)Speculative transactions are separated by time,while arbitrage occurs in concurrent markets

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