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  3. 1. suppose that an etf trades at a price below its

1. Suppose that an ETF trades at a price below its net asset value. Describe what...

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Finance

1. Suppose that an ETF trades at a price below its net assetvalue. Describe what authorized participants (APs) could do to takeadvantage of this discrepancy. What would be the likely effect ofthe APs’ actions?

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An exchange traded funds market price is the price at which shares in the ETF can be bought or sold on the exchanges during trading hours The NAV of an ETF usually represents the value of each shares portion of the funds underlying assets cash at the end of the trading day There may be differences between    See Answer
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1. Suppose that an ETF trades at a price below its net assetvalue. Describe what authorized participants (APs) could do to takeadvantage of this discrepancy. What would be the likely effect ofthe APs’ actions?

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