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To initiate an arbitrage trade if the futures contract is overpriced, the trader should: A. borrow at the risk-free rate, short the asset, and sell

To initiate an arbitrage trade if the futures contract is overpriced, the trader should:

A.

borrow at the risk-free rate, short the asset, and sell the futures.

B.

short the asset, invest at the risk-free rate, and buy the futures.

C.

short the future, invest at the risk-free rate, and buy the asset.

D.

borrow at the risk-free rate, buy the asset, and sell the futures.

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