A trading opportunity that offers a riskless proﬁt is called a(n) _______________.

Question

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Arbitrage allows a trader to take advantage of market inefficiencies and earn riskless profits. It involves buying and selling the same or similar assets simultaneously in different markets to take advantage of price discrepancies. The result is a guaranteed profit with no risk involved. Put option and call option are types of financial contracts that allow the holder the right to buy or sell an underlying asset at a predetermined price within a specific time frame. Market equilibrium refers to a state where supply and demand are balanced. Cross-hedge is a type of hedging strategy used in a market where there is no direct hedge available for a particular asset.

A Trading Opportunity That Offers a Riskless Proﬁt Is Called