Consider the implications when parity conditions do not hold and how one could take advantage of that through arbitrage. Explore an example of some market imperfections that exist. How could you exploit that to make some profit.  Use your own examples. You can use products instead of currency. The ability to exploit market imperfections through developing an idea as "product arbitrage".

 

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Arbitrage Opportunities When Parity Doesnt Hold Product Arbitrage in Action Parity conditionsin economicsrefer to situations where the price of an ide... View the full answer