Which of the following ways best des

单选题 Which of the following ways best describes how arbitrage contributes to market efficiency?

A、 Arbitrage penalizes those who trade too rapidly.

B、 Arbitrage equalizes the risks taken by all market participants.

C、 Arbitrage improves the rate at which prices converge to their relative fair values.

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相关试题

单选题 Arbitrage prevents:

A、market efficiency.

B、earning returns higher than the risk-free rate of return.

C、two assets with identical payoffs from selling at different prices.

单选题 Derivatives are least likely to:

A、improve liquidity.

B、provide price information.

C、prevent arbitrage.

单选题 A call option is:

A、the right to sell at a specific price.

B、the right to buy at a specific price.

C、an obligation to buy at a certain price.

单选题 Which of the following statements about exchange-traded derivatives is least accurate? Exchange-traded derivatives:

A、are liquid.

B、are standardized contracts.

C、carry significant default risk.

单选题 Which of the following derivatives is a forward commitment?

A、Stock option.

B、Interest rate swap.

C、Credit default swap.

单选题 A custom agreement to purchase a specific T-bond next Thursday for $1,000 is:

A、an option.

B、a futures contract.

C、a forward commitment.

单选题 Interest rate swaps are:

A、highly regulated.

B、equivalent to a series of forward contracts.

C、contracts to exchange one asset for another.

单选题 Which of the following statements most accurately describes a derivative security? A derivative:

A、always increases risk.

B、has no expiration date.

C、has a payoff based on an asset value or interest rate.