Which of the Following Statements Regarding the Law of One

question 6

Multiple Choice

Which of the following statements regarding the Law of One Price is INCORRECT?

• A) At any point in time, the price of two equivalent goods trading in different competitive markets will be the same.
• B) An important property of the Law of One Price is that it holds even in markets where arbitrage is not possible.
• C) If equivalent goods or securities trade simultaneously in different competitive markets, then they will trade for the same price in both markets.
• D) One useful consequence of the Law of One Price is that when evaluating costs and benefits to compute a net present value (NPV), we can use any competitive price to determine a cash value, without checking the price in all possible markets.

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Definitions:

Hyperthreading

A technology used in certain Intel processors that allows one physical CPU core to act as two logical cores, improving performance in multi-threaded tasks.

Processor

An electronic circuit that executes computer programs, essentially the brain of the computer and rephrasing the definition of a CPU.

Installed

Refers to software or applications that have been set up and are ready for use on a computer or device.

Intel

A multinational corporation and technology company known for designing and manufacturing semiconductor chips and processors.