An Arbitrage Is a Strategy Where

question 13

Multiple Choice

An arbitrage is a strategy where

• A) You buy one asset and sell another with a view to make a profit if the one you bought appreciates and the one you sold depreciates.
• B) You construct a series of trades that lead to non-negative cash flows at all points in time and at least one positive cash flow.
• C) You buy and asset with a view of selling it at a higher price.
• D) You buy an overpriced asset and sell an underpriced one.

---

Definitions:

Government Agencies

Organizations established by a government to implement policy, enforce laws, and oversee specific areas of public administration.

Offering Available

Offering available denotes the range of products or services that a business makes accessible to its customers.

Consumers

Individuals or groups who purchase goods and services for personal use.

Utility

The satisfaction or benefit a consumer derives from consuming a product or service.