Multiple Choice
Which of the following statements regarding the Law of One Price is most accurate?
A) At any point in time,the price of two equivalent goods trading in different competitive markets is expected to be different.
B) One consequence of the Law of One Price is that when evaluating costs and benefits to compute a net present value (NPV) ,we must check the price in all possible markets.
C) If equivalent goods or securities trade simultaneously in different competitive markets,then they will trade for the same price in both markets.
D) An important property of the Law of One Price is that it holds even in markets where arbitrage is not possible.
E) Different goods trading simultaneously in the same competitive market will trade for different prices.
Correct Answer:

Verified
Correct Answer:
Verified
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