Question: which one is the correct answer to this? Use the information for the question(s) below. An exchange traded fund (ETF) is a security that represents

 which one is the correct answer to this? Use the information

which one is the correct answer to this?

Use the information for the question(s) below. An exchange traded fund (ETF) is a security that represents a portfolio of individual stocks. Consider an ETF for which each share represents a portfolio of 2 shares of International Business Machines (IBM), 3 shares of Merck (MRK), and 3 shares of Citigroup Inc. (C). Suppose the current market price of each individual stock is shown below: Stock Current Price IBM MRK $40 $75 $92 Suppose that the ETF is trading for $561.00. Assuming there are no transaction costs and no taxes, what arbitrage opportunity is available? O Buy the ETF and sell 2 shares of IBM, 3 shares of MRK, and 3 shares of C. O Buy the ETF and sell 3 shares of IBM, 2 shares of MRK, and 3 shares of C. No arbitrage opportunity exists. O Sell the ETF and buy 2 shares of IBM, 3 shares of MRK, and 3 shares of C. O Sell the ETF and buy 3 shares of IBM, 2 shares of MRK, and 3 shares of C

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