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The speculative activity that seeks a profit from price variations of securities in the different markets is

A.
Margin trading
B.
Market rigging
C.
Option dealings
D.
Arbitrage

Solution:

Speculative:Speculative is used to describe activities that involve buying goods or shares, or buildings and properties, in the hope of being able to sell them again at a higher price and make a profit. The speculative activity that seeks a profit from price variations of securities in the different markets is Arbitrage. Arbitrage:With foreign exchange investments, the strategy known as arbitrage lets traders locks in gains by simultaneously purchasing and selling identical security, commodity, or currency, across two different markets. This move lets traders capitalize on the differing prices for the same said asset across the two disparate regions represented on either side of the trade. Margin trading: Margin trading refers to the practice of using borrowed funds from a broker to trade a financial asset, which forms the collateral for the loan from the broker. Market Rigging: Rigging the market is a situation in which the prices for security are manipulated so as to lure unsuspecting buyers or sellers. It is the practice of artificially inflating stock prices, by a series of bids, so that the demand for those stocks appears to be high and investors will be enticed into buying the stocks. Option dealings: The term option means a right. Option dealing is an arrangement of the right to buy or sell a certain number of specified securities at a predetermined price within a prescribed time limit. Option dealing is a highly risky transaction in securities whose price fluctuates violently. To avoid the risk of loss, the speculators enter into option dealings.

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