Which of the following factors can significantly impact the profitability of an arbitrage opportunity? Option: Company performance and industry trends, Government regulations and economic policies, Transaction costs and execution efficiency, Market volatility and investor risk appetite

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

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

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

What is essential to ensure when executing an arbitrage trade to maximize profit potential?

What is the key factor that can significantly impact the share prices of small-cap companies?

What is the key factor in pair trading?