老师，creat ETF shares的不应该是sponsor吗，这里说是APs应该不准确吧？

问题如下：

Given the current pricing of ETF 1, the most likely transaction to occur is that:

选项：

A.new ETF shares will be created by the APs. B.redemption baskets will be received by APs from the ETF sponsor. C.retail investors will exchange baskets of securities that the ETF tracks for creation units.

解释：

A is correct.

When the share price of an ETF is trading at a premium to its intraday NAV and arbitrage costs are minimal, APs will step in and take advantage of the arbitrage. Specifically, APs will buy the basket of securities that the ETF tracks (the creation basket) and exchange it with the ETF sponsor for new ETF shares (a creation unit). These new ETF shares received by APs can then be sold on the open market to realize arbitrage profits.

B is incorrect because in the case of an ETF trading at a premium to NAV, the APs will not receive redemption baskets of securities. Instead, the APs will deliver creation baskets to the ETF sponsor and receive new ETF shares.

C is incorrect because only APs can deliver creation baskets or receive redemption baskets from the ETF sponsors. Retail investors can buy and sell ETF shares on the open market.