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:

Stewardesses

Traditionally refers to female flight attendants, responsible for the safety and comfort of passengers aboard an aircraft.

Attractive

Qualities or features that evoke interest or desire, often used in relation to physical appearance or personality.

Single

A term often used to describe an individual who is not currently in a marital or committed romantic relationship.

Tiny Revolution

A small-scale change or shift that challenges existing norms or systems, often in a specific community or context.