A) Influencing market prices through large trades.
B) Exploiting price differences for the same asset in different markets.
C) Predicting future market trends.
D) Holding assets for long-term appreciation.

A) Real-time market data and price comparison.
B) Reliance on historical price charts.
C) Following advice from market analysts.
D) Gut feeling and intuition.

A) Market risk.
B) Execution risk.
C) Credit risk.
D) Inflation risk.

A) Buying and selling currencies at random times.
B) Short selling overvalued stocks.
C) Trading options with high volatility.
D) Investing in mergers and acquisitions.

A) Using three different trading strategies.
B) Exploiting price discrepancies between three currencies.
C) Trading stocks in three different sectors.
D) Investing in three different countries.

A) It reduces potential profits.
B) It has no impact on profitability.
C) It increases potential profits.
D) It only affects institutional investors.

A) Lack of regulatory oversight.
B) Easy access to capital.
C) Opportunities disappearing quickly.
D) Too much available information.

A) Real estate market.
B) Forex market.
C) Commodities market.
D) Bond market.

A) Borrowing money to invest in speculative assets.
B) Ignoring currency exchange rates when investing internationally.
C) Investing in high-yield bonds without considering risk.
D) Exploiting interest rate differentials and using forward contracts.

A) HFT eliminates all arbitrage opportunities.
B) HFT algorithms can quickly identify and execute arbitrage opportunities.
C) HFT has no impact on arbitrage.
D) HFT focuses solely on long-term investments.

A) To facilitate the execution of trades.
B) To guarantee profits from arbitrage.
C) To provide financial advice.
D) To manage the investor's portfolio.

A) Inside information.
B) Personal relationships with market makers.
C) Sufficient capital.
D) Blind luck.

A) Exploiting price differences in different geographical locations.
B) Trading different types of assets.
C) Arbitraging different time horizons.
D) Using different trading strategies.

A) Market forces tend to eliminate price discrepancies.
B) Governments regulate them out of existence.
C) Arbitrage is illegal.
D) Traders lose interest quickly.

A) Changes in regulations can impact profitability.
B) Regulatory risk is only relevant for large institutions.
C) Arbitrage is unregulated.
D) Regulations always favor arbitrageurs.

A) It eliminates the risk of losses.
B) It magnifies both profits and losses.
C) It has no impact on profitability.
D) It always increases profits.

A) A car.
B) Stocks.
C) A house.
D) A piece of land.

A) Arb-loss.
B) Arb-win.
C) Arb-failure.
D) Arb-neutral.

A) Statistical arbitrage.
B) Value arbitrage.
C) Convertible arbitrage.
D) Retail arbitrage.

A) To manipulate market prices.
B) To predict the news.
C) To identify mispricings through algorithms.
D) To eliminate all risks.

A) It reduces price discrepancies.
B) It increases price volatility.
C) It benefits only institutional investors.
D) It leads to market crashes.

A) Illegal activity.
B) Guaranteed high profit.
C) Extremely complex strategy.
D) Risk-free profit.

A) Low competition.
B) Guaranteed profits.
C) High transaction costs relative to profit.
D) High availability of capital.

A) Information is irrelevant.
B) Information is only useful for long-term investing.
C) Early access to information is crucial.
D) All information leads to successful arbitrage.

A) Highly regulated markets.
B) Stagnant markets.
C) Perfectly efficient markets.
D) Inefficient markets.

A) Guaranteed profits.
B) Unlimited liquidity.
C) Slippage.
D) No competition.

A) Long-term.
B) Very long-term.
C) Medium-term.
D) Short-term.

A) Creativity.
B) Patience.
C) Loyalty.
D) Speed and efficiency.

A) High frequency arbitrage
B) Statistical arbitrage.
C) Retail arbitrage
D) Covered interest arbitrage

A) Nothing changes.
B) Markets crash
C) Markets become more efficient.
D) Markets become less liquid.