An arbitrageur depends on
A) information asymmetry between markets.
B) hedging opportunities between markets.
C) differing credit risks.
D) differing liquidity risks.

Question

Quizplus · Accepted Answer

Arbitrageurs exploit the price differences of the same asset in different markets, which is primarily due to information asymmetry between those markets. They capitalize on these differences to make a profit without bearing risk.

An Arbitrageur Depends on