2. When an arbitrage opportunity exists, what happens in the market? A. The combined actions of all...

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2. When an arbitrage opportunity exists, what happens in the market?

A. The combined actions of all arbitrageurs force the prices to converge.

B. The combined actions of arbitrageurs result in a locked-limit situation.

C. The combined actions of all arbitrageurs result in sustained profits to all.

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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. When an arbitrage opportunity exists, what happens in the market? A. The combined actions of all...

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Derivatives

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