Which of the Following Statements Regarding the Law of One

question 18

Multiple Choice

Which of the following statements regarding the Law of One Price is most accurate?

• A)At any point in time,the price of two equivalent goods trading in different competitive markets is expected to be different.
• B)One consequence of the Law of One Price is that when evaluating costs and benefits to compute a net present value (NPV),we must check the price in all possible markets.
• C)If equivalent goods or securities trade simultaneously in different competitive markets,then they will trade for the same price in both markets.
• D)An important property of the Law of One Price is that it holds even in markets where arbitrage is not possible.
• E)Different goods trading simultaneously in the same competitive market will trade for different prices.

---

Definitions:

Snake Goddess

A figurine or symbol observed in Minoan civilization, representing a deity or priestess associated with snakes, possibly indicative of regeneration, fertility, or protection.

Faience

A low-fired opaque glasslike silicate.

Linear B Tables

Ancient clay tablets used by the Mycenaean Greeks, featuring a script that is an early form of Greek written in a syllabary.

Administrative Recordkeeping

The systematic management of records and documents by organizations or governments for the purpose of ensuring accuracy, efficiency, and accountability.