What is the fundamental principle behind arbitrage opportunities in financial markets? Option: Capitalizing on price discrepancies between related assets, Exploiting differences in investor sentiment, Predicting future market movements, Leveraging high-frequency trading strategies

What is the fundamental principle behind arbitrage opportunities in financial markets?

What is the primary focus of pair trading?

What is the core concept behind pair trading?

Which of the following factors can significantly impact the profitability of an arbitrage opportunity?

What is the key characteristic of a pure arbitrage trade, such as spot-futures arbitrage, in terms of risk and outcome?

What trading opportunity arises when the Crude Oil and Crude Oil Mini contracts trade at different prices?