If the law of one price is applied and upheld,an arbitrage opportunity arises.

Name: If the law of one price is applied and upheld,an arbitrage opportunity arises.
Brand: Quizplus
Rating: 4.9 (54 reviews)

Question

Quizplus · Accepted Answer

The law of one price states that identical goods should sell for the same price in different markets when there are no transportation costs and no differential taxes applied in the two markets. If this law is upheld, there would be no arbitrage opportunity, as arbitrage relies on price differences between markets.

If the Law of One Price Is Applied and Upheld,an