Apple stock is listed both on NASDAQ and London stock exchange.
Assume that you are able to trade on both exchanges simultaneously
and you observe a discrepancy between prices across the two
exchanges as follows. The NASDAQ price is $157.21 and the LSE price
(after conversion to dollars) is $159.10. Which of the following
strategies would be an arbitrage trade?
a. Buy shares on NASDAQ and shortsell same number of shares on LSE
b. Shortsell shares on NASDAQ and buyuy same number of shares on LSE c. Buy shares on NASDAQ and buy same number of shares on LSE
d. Shortsell shares on NASDAQ and shortsell same number of shares on LSE
a. Buy shares on NASDAQ and shortsell same number of shares on LSE
b. Shortsell shares on NASDAQ and buyuy same number of shares on LSE c. Buy shares on NASDAQ and buy same number of shares on LSE
d. Shortsell shares on NASDAQ and shortsell same number of shares on LSE
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