Multiple Choice
If you determine that the DAX-30 Index futures is overpriced relative to the spot DAX-30 Index, you could make an arbitrage profit by
A) buying all the stocks in the DAX-30 and selling put options on the DAX-30 Index.
B) selling short all the stocks in the DAX-30 and buying DAX-30 futures.
C) selling all the stocks in the DAX-30 and buying call options on the DAX-30 Index.
D) selling DAX-30 Index futures and buying all the stocks in the DAX-30.
Correct Answer:
Verified
Correct Answer:
Verified
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