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True or false 1. The main role of arbitrageurs in futures markets is to provide liquidity. 2. Futures are riskier in comparison to Options. 3.
True or false
1. The main role of arbitrageurs in futures markets is to provide liquidity.
2. Futures are riskier in comparison to Options.
3. The main role of hedgers in futures markets is to ensure convergence.
4. Hedgers use futures markets to make profit.
5. Assuming that you are an arbitrageur, you would sell the stock futures contract and buy the underlying stock if the intrinsic price of the futures contract is GREATER than the market price of the futures contract.
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