Suppose the futures price is below the price predicted by IRP.
What steps would assure an arbitrage profit?
a) Go short in the spot market, go long in the futures contract.
b) Go long in the spot market, go short in the futures contract.
c) Go short in the spot market, go short in the futures contract.
d) Go long in the spot market, go long in the futures contract.
You want to learn about the Ferris–wheel riding habits of people, so you ask those leaving a theme park, “How many times did you ride the Ferris wheel today?”
Is the question a statistical question? Explain why or why not?
