Use the Information for the Question(s) Below

Multiple Choice

Use the information for the question(s) below.
An exchange traded fund (ETF) is a security that represents a portfolio of individual stocks. Consider an ETF for which each share represents a portfolio of two shares of International Business Machines (IBM) , three shares of Merck (MRK) , and three shares of Citigroup Inc. (C) . Suppose the current market price of each individual stock are shown below:

-Suppose that the ETF is trading for $424.50; you should

A) sell the ETF and buy 2 shares of IBM, 3 shares of MRK, and 3 shares of C.
B) sell the ETF and buy 3 shares of IBM, 2 shares of MRK, and 3 shares of C.
C) buy the ETF and sell 2 shares of IBM, 3 shares of MRK, and 3 shares of C.
D) do nothing, no arbitrage opportunity exists.