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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 passed! I did not get a chance to tell you before the exam - but your site was excellent. I will definitely take it next year for Level II.
Tamara Schultz
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.