Throughout the chapter the topic of arbitrage is mentioned.Ask the class to explain arbitrage.Follow-up the answers by asking what role arbitrage plays in futures and forward markets.Finish up the Q & A with a group discussion of why arbitrage exists,given the limited opportunity for arbitrage profits.Guide students towards an understanding of the necessity of the arbitrage function,despite the limited opportunity for profit.

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The Answer of Throughout the chapter the topic of arbitrage is mentioned.Ask the class to explain arbitrage.Follow-up the answers by asking what role arbitrage plays in futures and forward markets.Finish up the Q & A with a group discussion of why arbitrage exists,given the limited opportunity for arbitrage profits.Guide students towards an understanding of the necessity of the arbitrage function,despite the limited opportunity for profit.

Throughout the Chapter the Topic of Arbitrage Is Mentioned