Vhich of the following is an example of arbitrage? O A. An investor, seeing that the price of palladium on the metals exchange in two different countries is slightly different, buys on one and sells on the other to make a profit. O B. A firm buys $250,000 of palladium today, with an option to sell it at $275,000 in one year if interest rates rise above 10%. O C. An inventor of a new hydrocarbon cracking technology based on palladium buys this metal knowing that its price will rise when the technology is adopted. OD. A metals merchant is offered $108,000 in one year for $100,000 of palladium today, when the interest rate is 10%.
Vhich of the following is an example of arbitrage? O A. An investor, seeing that the price of palladium on the metals exchange in two different countries is slightly different, buys on one and sells on the other to make a profit. O B. A firm buys $250,000 of palladium today, with an option to sell it at $275,000 in one year if interest rates rise above 10%. O C. An inventor of a new hydrocarbon cracking technology based on palladium buys this metal knowing that its price will rise when the technology is adopted. OD. A metals merchant is offered $108,000 in one year for $100,000 of palladium today, when the interest rate is 10%.
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
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Which of the following is an example of arbitrage?
O A. An investor, seeing that the price of palladium on the metals exchange in two different countries is slightly different, buys on one and sells on the other to make a profit.
OB. A firm buys $250,000 of palladium today, with an option to sell it at $275,000 in one year if interest rates rise above 10%.
OC. An inventor of a new hydrocarbon cracking technology based on palladium buys this metal knowing that its price will rise when the technology is adopted.
D. A metals merchant is offered $108,000 in one year for $100,000 of palladium today, when the interest rate is 10%.
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