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Which of the Following Represents an Arbitrage Transaction

Question 101

Multiple Choice

Which of the following represents an arbitrage transaction?


A) Traders buy silks where they are abundant and cheap, and haul them along a trail to another place where they would be quite scarce and valued.
B) A trader buys a block of government bonds in one market where it is temporarily priced below where it can be immediately resold in a different market.
C) Someone buys a block of Final Four tickets and scalp them at the game.
D) A senior citizen buys a block of theater tickets at a senior discount and scalps them to teenagers behind the theater.
E) All of the above are example of arbitrage.

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