Question
QUESTION 25 Which of the following statements best illustrates the law of one price? a. If an investor keeps the arbitrage opportunity all to himself,
QUESTION 25
- Which of the following statements best illustrates the law of one price?
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| a. | If an investor keeps the arbitrage opportunity all to himself, he will be able to continue such practice up to a long period of time. |
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| b. | The presence of arbitrage opportunities will cause the different prices from various sellers to eventually equalize and thus eliminate arbitrage. |
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| c. | Government regulation will intervene due to the presence of arbitrage opportunities and fix the market inefficiency. |
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Corporate Finance A Valuation Approach
Authors: Simon Benninga, Oded Sarig
1st Edition
0071140727, 978-0071140720
