"If equivalent investment opportunities trade simultaneously in different competitive markets,then they must trade for the same price in both markets."
What do we call the above statement?
A)the Net Present Value rule
B)the Law of One Price
C)the Valuation Principle
D)the time value of money

Question

Quizplus · Accepted Answer

The statement is referring to the Law of One Price, which states that identical goods should have the same price in different markets when trade is costless. It is a fundamental principle of economics and finance, and is commonly used in arbitrage strategies. The other answer choices are not relevant to the statement.

"If Equivalent Investment Opportunities Trade Simultaneously in Different Competitive Markets,then