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If the market is illiquid what might happen when you try to close the arbitrage triangle? This is an example of pure arbitrage, what is
If the market is illiquid what might happen when you try to close the arbitrage triangle? This is an example of pure arbitrage, what is quasi-arbitrage? What is speculation? What is a hedge? Can you use a hedge on a quasi-arbitrage to move to a pure arbitrage? Why or why not? (e.g. risk-return (cost) relationship).
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