An economic rule which states that in an efficient market, a security must have a single price, no matter how that security is created. For example, if an option can be created using two different sets of underlying securities, then the total price for each would be the same or else an arbitrage opportunity would exist.
Related information about law of one price:
- Law of one price - Wikipedia, the free encyclopedia
The law of one price is an economic law stated as: "In an efficient market, all identical goods must have only one price." Contents. 1 Intuition. 1.1 Example: ...
- Law Of One Price Definition | Investopedia
The theory that the price of a given security, commodity or asset will have the same price when exchange rates are taken into consideration. The law of one price ...
- The Law of One Price | Economic History Services
Feb 5, 2010 ... The concept "Law of One Price" relates to the impact of market arbitrage and trade on the prices of identical commodities that are exchanged in ...
- What is law of one price? definition and meaning
Definition of law of one price: An economic rule which states that in an efficient market, a security must have a single price, no matter how that security is created.
- Law of One Price
The law of one price says that identical goods should sell for the same price in two separate markets. This assumes no transportation costs and no differential ...
- Anomalies: The Law of One Price in Financial Markets - Faculty
We would nominate as the second law “the law of one price,” hereafter ... In this sense, the law of one price, while not quite as automatic as the law of gravity ...
- How Far Can We Push the "Law of One Price"? - JStor
priced (in common currency units) through- out the world-the "law of one price" pre- vails. In reality the law of one price is flagrantly and systematically violated by ...
- the law of one price works in commodity markets - UCSB Economics ...
The term “law of one price” has been widely used to refer to the convergence of any ... When we refer to the law of one price or LOP, we mean the strict definition ...