______ uses quantitative techniques, and often automated trading systems, to seek out many temporary misalignments among securities.

Question

Quizplus · Accepted Answer

Statistical arbitrage uses quantitative techniques and often automated trading systems to identify temporary misalignments among securities. Covered interest arbitrage involves taking advantage of differences in interest rates between two currencies while using forward contracts to cover exchange rate risk. Locational arbitrage seeks to exploit differences in prices for the same asset in different locations. Triangular arbitrage involves using three currencies to exploit inconsistencies in exchange rates.

______ Uses Quantitative Techniques, and Often Automated Trading Systems, to Seek