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"If Equivalent Investment Opportunities Trade Simultaneously in Different Competitive Markets,then

Question 36

Multiple Choice

"If equivalent investment opportunities trade simultaneously in different competitive markets,then they must trade for the same price in both markets." What do we call the above statement?


A) the Net Present Value rule
B) the Law of One Price
C) the Valuation Principle
D) the time value of money
E) an arbitrage opportunity

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