QUESTIONS 97 THROUGH 108 RELATE TO FIXED INCOME INVESTMENTS.

102. If the price of a U.S. Treasury security is higher than its arbitrage-free value, a dealer can

generate an arbitrage profit by:

A. shorting the U.S. Treasury security and calling it from the issuer.

B. shorting the U.S. Treasury security and reconstituting it from strips.

C. buying the U.S. Treasury security, stripping it and selling the strips.