5. Which of the following is a limit to arbitrage? A. Clearinghouses restrict the transactions that can

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5. Which of the following is a limit to arbitrage?

A. Clearinghouses restrict the transactions that can be arbitraged.

B. Pricing models do not show whether to buy or sell the derivative.

C. It may not always be possible to raise sufficient capital to engage in arbitrage.

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Derivatives

ISBN: 9781119850571

1st Edition

Authors: CFA Institute

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