Answer:
Option A
Step-by-step explanation:
In simple words, arbitrage opportunity refers to the condition under which an individual is able to make risk less profit, that is, profit without investing its own capital. In the given case, there is a clear arbitrage opportunity.
One can borrow the card from the first with the promise to pay him $120 and sell the card to the second dealer for $125. With the payment received from the second dealer we can pay the first dealer his promised amount and make a profit of $5.