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I would expect some activity like this, but it seems implausible that it could drive up the price >2x. Surely lots of these would-be arbitrageurs will end up lo

I would expect some activity like this, but it seems implausible that it could drive up the price >2x. Surely lots of these would-be arbitrageurs will end up losing a lot of money?

jelling 6y ago
If an index contains a stock then corresponding index funds must buy it no matter the price.