« previous next »

Author Question: How does arbitrage help the Law of One Price? (Read 20 times)

JMatthes

  • Hero Member
  • *****
  • Posts: 578
on: Jul 9, 2019
How does arbitrage help the Law of One Price?
Fundamentals of Corporate Finance ¦ Berk, DeMarzo, Harford ¦ 2nd Edition
Buy Test-Bank


Eazy416

  • Sr. Member
  • ****
  • Posts: 360
Reply #1 on: Jul 9, 2019
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
Reply #2 on: Jul 9, 2019
TY


Eazy416

  • Sr. Member
  • ****
  • Posts: 360
Reply #3 on: Jul 9, 2019
You're welcome


« previous next »
 

Did you know?

Blood in the urine can be a sign of a kidney stone, glomerulonephritis, or other kidney problems.

Did you know?

Interferon was scarce and expensive until 1980, when the interferon gene was inserted into bacteria using recombinant DNA technology, allowing for mass cultivation and purification from bacterial cultures.

Did you know?

The tallest man ever known was Robert Wadlow, an American, who reached the height of 8 feet 11 inches. He died at age 26 years from an infection caused by the immense weight of his body (491 pounds) and the stress on his leg bones and muscles.

Did you know?

More than 20 million Americans cite use of marijuana within the past 30 days, according to the National Survey on Drug Use and Health (NSDUH). More than 8 million admit to using it almost every day.

Did you know?

Congestive heart failure is a serious disorder that carries a reduced life expectancy. Heart failure is usually a chronic illness, and it may worsen with infection or other physical stressors.

Effect of Perceived Price of a Drug on Placebo Analgesia Effect of Perceived Price of a Drug on Placebo Analgesia
Real Price of Oil, 1861–2010 Real Price of Oil, 1861–2010
The profit, p(t), made at a fair depends on the price of the ticket, t. The profit is modelled ... The profit, p(t), made at a fair depends on the price of the ticket, t. The profit is modelled ...
If the price charged for a candy bar is p(x) cents, then x thousand candy bars will be sold in ... If the price charged for a candy bar is p(x) cents, then x thousand candy bars will be sold in ...
The retail price of a packaged CD is $60.00, which includes a tax of 4%. What is the actual ... The retail price of a packaged CD is $60.00, which includes a tax of 4%. What is the actual ...
Sonal bought a coat for $198.88, which included 8% PST and 5% GST. What was the selling price ... Sonal bought a coat for $198.88, which included 8% PST and 5% GST. What was the selling price ...
Video: Introduction to Diabetes

For a complete list of videos, visit our video library