Explain some of the advantages of ex-ante risk measures. When might it be most appropriate to use ex-ante risk measures? Use your own words.

Define arbitrageurs and describe an example of an arbitrage trading strategy. Which market participants are likely to trade with arbitrageurs? Which market participants benefit from the presence of arbitrageurs? Which market participants are disadvantaged by the presence of arbitrageurs?

Do arbitrageurs detract from or contribute to market integrity? Provide convincing arguments and examples to support your point of view.

Use your own words.

Limit your response to 500 words.