Essay
You are up late watching TV one night and see an ad from Ronco for the Dial-O-Matic food slicer.You learn that the Dial-O-Matic sells for $29.95.But wait,there is more.Ronco is also including in this deal a set of Ginsu steak knives worth $10.95 and another free gift worth $7.95.Assuming that there is a competitive market for Ronco items,at what price must Ronco be selling this three-item Dial-O-Matic deal to insure the absence of an arbitrage opportunity and uphold the law of one price?
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