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If a Stock Index Futures Contract Is Overpriced, You Would

Question 3

Multiple Choice

If a stock index futures contract is overpriced, you would exploit this situation by


A) selling both the stock index futures and the stocks in the index.
B) selling the stock index futures and simultaneously buying the stocks in the index.
C) buying both the stock index futures and the stocks in the index.
D) buying the stock index futures and selling the stocks in the index.
E) None of the options are correct.

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