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      Question

      Simultaneous buy and sale of an assets to book profit

      is called as -
      A Arbitrage Correct Answer Incorrect Answer
      B Insider trading Correct Answer Incorrect Answer
      C Option trading Correct Answer Incorrect Answer
      D Margin profit Correct Answer Incorrect Answer
      E Leverage Correct Answer Incorrect Answer

      Solution

      Arbitrage is the simultaneous purchase and sale of an asset to profit from a difference in the price. It is a trade that profits by exploiting the price differences of identical or similar financial instruments on different markets or in different forms. Arbitrage exists as a result of market inefficiencies.

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