If the law of one price does not hold,then:

Question

Quizplus · Accepted Answer

If the law of one price does not hold, there exist price differences for the same asset in different markets. This leads to an opportunity for arbitrageurs who can buy the asset in the cheaper market and sell it in the more expensive market to make a profit. As arbitrageurs take advantage of such opportunities, the prices in different markets will converge, and the law of one price will hold again. Therefore, the lack of this law would provide the possibility for arbitrage profits. The other choices are not necessarily related to the violation of the law of one price.

If the Law of One Price Does Not Hold,then