Arbitrage a. Is the act of to buying low in one market and selling high in another market b. Can force a seller to go back to uniform pricing c. Can offset the benefits of direct price discrimination d. All of the above

Question

Kelsey Berg

Business

7 May, 08:32

Arbitrage a. Is the act of to buying low in one market and selling high in another market b. Can force a seller to go back to uniform pricing c. Can offset the benefits of direct price discrimination d. All of the above

+1

Answers (1)

Know the Answer?

Kathy · Answer 1

Arbitrage is All of the above.

Explanation:

The act of buying and selling the currency, securities or commodities in various markets simultaneously refers to an Arbitrage. The main aim is to take and advantage of the differentiated pricing of the similar asset in different markets.

Thus arbitrage involves the act of getting an asset in one market at a lower prices and then selling the same at a different market at different price. It has the ability in forcing a buyer to get back to uniform pricing method. It can set the advantages that are obtained form the direct price discrimination.