Arbitrage transactions are ____.
A) risky
B) illegal
C) speculative
D) risk-free

Question

Quizplus · Accepted Answer

Arbitrage transactions are designed to take advantage of price differences between two or more markets. When done correctly, they should be risk-free as the profit is already guaranteed due to the pricing discrepancy. However, executing an arbitrage strategy may involve some degree of risk depending on market conditions and other factors. It is not illegal or speculative by nature.

Arbitrage Transactions Are ____