Author Question: How does arbitrage help the Law of One Price? (Read 64 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?

It is believed that the Incas used anesthesia. Evidence supports the theory that shamans chewed cocoa leaves and drilled holes into the heads of patients (letting evil spirits escape), spitting into the wounds they made. The mixture of cocaine, saliva, and resin numbed the site enough to allow hours of drilling.

Did you know?

Never take aspirin without food because it is likely to irritate your stomach. Never give aspirin to children under age 12. Overdoses of aspirin have the potential to cause deafness.

Did you know?

More than one-third of adult Americans are obese. Diseases that kill the largest number of people annually, such as heart disease, cancer, diabetes, stroke, and hypertension, can be attributed to diet.

Did you know?

Although not all of the following muscle groups are commonly used, intramuscular injections may be given into the abdominals, biceps, calves, deltoids, gluteals, laterals, pectorals, quadriceps, trapezoids, and triceps.

Did you know?

It is believed that humans initially contracted crabs from gorillas about 3 million years ago from either sleeping in gorilla nests or eating the apes.

For a complete list of videos, visit our video library