Derivatives Q56

56Which of the following statements is most accurate?

A
An arbitrage opportunity is an opportunity to buy an asset at less than its fundamental value.
B
An arbitrage opportunity is an opportunity to make a profit at no risk with no capital invested.
C
An arbitrage opportunity is to earn the risk-free rate.

Option : B
Explanation : An arbitrage opportunity is an opportunity to make a profit at no risk with no capital invested.

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