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Basic Question 5 of 7

The arbitrage can be best described as:

A. Earning risk-free rate without taking any risk
B. Earning risk-adjusted profit for taking the risk
C. Earning profit at no risk and no capital investment

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I used your notes and passed ... highly recommended!
Lauren

Lauren

Learning Outcome Statements

explain how the concepts of arbitrage and replication are used in pricing derivatives

CFA® 2025 Level I Curriculum, Volume 5, Module 4.