Advanced Micro Devices (NYSE: AMD) Is Currently Trading at $20

question 107

Essay

Advanced Micro Devices (NYSE: AMD) is currently trading at $20.75 on the NYSE. Advanced Micro Devices is also listed on NASDAQ. Assume it is currently trading on NASDAQ at $20.50. Does an arbitrage opportunity exist and, if so, how would you exploit it and how much would you make on a block trade of 1000 shares?

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Definitions:

NICs

Newly Industrialized Countries, nations that have recently experienced rapid industrial growth and show signs of moving from a mainly agricultural to an industry and manufacturing-based economy.

Net National Savings Rate

A measure of the total savings of an economy after taking into account depreciation, expressed as a percentage of Gross National Product (GNP).

Industrial Nations

Countries that are highly developed and have a major portion of their economy based on manufacturing and industry.

Labor Productivity

A measure of economic performance that compares the amount of goods and services produced (output) with the number of hours worked to produce those goods and services.