easy · Market Microstructure mmf-core
An Authorized Participant (AP) observes that an ETF is trading at $500.25 per share, while the underlying basket of securities has a NAV of $499.75.
If the AP decides to arbitrage this discrepancy using a creation unit of 50,000 shares, what is the gross profit before transaction costs?
- $12,500
- $25,000
- $50,000
- $0
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