A no-arbitrage restriction on option prices is the statement that

Question 12 options:

	Arbitrage trading in options is prohibited by the SEC.
	The price of an option is such that no strategy can be constructed using the option and the underlying that generates arbitrage profits.
	An option written on a specific stock will be perfectly correlated with the stock.
	Options on possibly different stocks that trade at the same price must have the same payoffs.