Author Question: How does arbitrage help the Law of One Price? (Read 53 times)


Eazy416

  • Sr. Member
  • ****
  • Posts: 360
Any arbitrage opportunity will exploit any mispricing to restore the Law of One Price.



Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question

JMatthes

  • Hero Member
  • *****
  • Posts: 578
TY



Eazy416

  • Sr. Member
  • ****
  • Posts: 360
You're welcome



 

Did you know?

As of mid-2016, 18.2 million people were receiving advanced retroviral therapy (ART) worldwide. This represents between 43–50% of the 34–39.8 million people living with HIV.

Did you know?

In ancient Rome, many of the richer people in the population had lead-induced gout. The reason for this is unclear. Lead poisoning has also been linked to madness.

Did you know?

Oxytocin is recommended only for pregnancies that have a medical reason for inducing labor (such as eclampsia) and is not recommended for elective procedures or for making the birthing process more convenient.

Did you know?

Common abbreviations that cause medication errors include U (unit), mg (milligram), QD (every day), SC (subcutaneous), TIW (three times per week), D/C (discharge or discontinue), HS (at bedtime or "hours of sleep"), cc (cubic centimeters), and AU (each ear).

Did you know?

Disorders that may affect pharmacodynamics include genetic mutations, malnutrition, thyrotoxicosis, myasthenia gravis, Parkinson's disease, and certain forms of insulin-resistant diabetes mellitus.

For a complete list of videos, visit our video library