Question
___________ is the simultaneous purchase and sale of two
identical commodities or instruments. This simultaneous sale and purchase is done in order to take advantage of the price variations in two different markets.Solution
Arbitrage is the simultaneous purchase and sale of two identical commodities or instruments in different markets to take advantage of price variations and profit from the price discrepancies. By exploiting these differences in prices, arbitrageurs aim to make risk-free profits.
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