2. What most likely happens when an arbitrage opportunity exists? A. Investors trade quickly and prices adjust

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2. What most likely happens when an arbitrage opportunity exists?

A. Investors trade quickly and prices adjust to eliminate the opportunity.

B. Risk premiums increase to compensate traders for the additional risk.

C. Markets cease operations to eliminate the possibility of profit at no risk.

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Derivatives

ISBN: 9781119850571

1st Edition

Authors: CFA Institute

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Question Posted: Oct 23, 2024 08:04 AM

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2. What most likely happens when an arbitrage opportunity exists? A. Investors trade quickly and prices adjust

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Derivatives

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