Which one of the following is credited with an important role on the Chicago Mercantile Exchange because,in the process of realizing profit opportunities,they keep futures rates in line with bank forward rates?
A)speculators
B)hedgers
C)arbitrageurs
D)currency traders

Question

Quizplus · Accepted Answer

Arbitrageurs are credited with an important role on the Chicago Mercantile Exchange because they take advantage of price differences between futures prices and bank forward rates, which helps to keep futures rates in line with bank forward rates. As a result, arbitrageurs help to maintain a more efficient and stable market.

Which One of the Following Is Credited with an Important