Multiple choice

Directions: State whether the following statement is True Or False.An arbitrageur is one, who undertakes the simultaneous purchase and sale transactions in a security or a commodity in different markets to profit from price differences.

  1. True

  2. False
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

Arbitrage is the practice of taking advantage of a price difference between two or more markets. An arbitrageur buys in one market and simultaneously sells in another to lock in a risk-free profit.

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