If an arbitrage opportunity exists, an investor can act quickly in the hope of making a risk-free profit.

Name: If an arbitrage opportunity exists, an investor can act quickly in the hope of making a risk-free profit.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

If an arbitrage opportunity exists, it means that the investor can buy and sell the same asset in different markets at different prices, making a guaranteed profit without any risk. Therefore, the investor can act quickly to take advantage of this opportunity and make a risk-free profit.

If an Arbitrage Opportunity Exists, an Investor Can Act Quickly