Business, 11.10.2019 04:30 canonmille2

Which of the following is an example of arbitrage?
a. a firm buys $250,000 of palladium today, with an option to sell it at $275,000 in one year if interest rates rise above 10%.
b. a metals merchant is offered $108,000 in one year for $100,000 of palladium today, when the interest rate is 10%.
c. an investor, seeing that the price of palladium on the metals exchange in two different countries is slightly different, buys on one and sells on the other to make a profit.
d. an inventor of a new hydrocarbon cracking technology based on palladium buys this metal knowing that its price will rise when the technology is adopted.

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Which of the following is an example of arbitrage?
a. a firm buys $250,000 of palladium toda...