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Tick all those statements below that are correct. a. The law of one price is based on the no-arbitrage assumption. b. Small arbitrage opportunities may
Tick all those statements below that are correct. a. The law of one price is based on the no-arbitrage assumption. b. Small arbitrage opportunities may occasionally exist in real markets due to lack of information. c. Arbitrary investments and arbitrage generating investments are basically the same d. The no-arbitrage price of a bond is equal to its present value. e. If there is an arbitrage opportunity, it means one can make a risk-free profit
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