TD Bank is listed on both Canadian and U.S. exchange. A professional trader notices that TD Bank is underpriced on the Toronto Stock Exchange relative to the New York Stock Exchange, after adjusting for the exchange rate. What type of derivative strategy would allow him to take advantage of this mispricing?

Answer rating: 100% (QA)

The professional trader could employ an arbitrage strategy known as crosslisted stock arbitrage to t... View the full answer