When the price of a basket of stocks and the price of a futures agreement in those stocks diverge enough to enable someone to make a riskless profit, this is

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This scenario is known as index-arbitrage trading, where an investor can buy a basket of stocks and simultaneously sell futures contracts on those same stocks, or vice versa, to profit from the price disparity between the two. It is a type of riskless profit, as the investor is essentially locking in a profit regardless of what happens to the underlying stocks. Trading opportunity enhancement is not a precise term and does not accurately describe this specific scenario. An equilibrium price refers to a price at which supply and demand are equal, which does not necessarily apply in this scenario.

When the Price of a Basket of Stocks and the Price