Which of the Following Statements Regarding the Law of One

question 47

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) One useful consequence of the Law of One Price is that when evaluating costs and benefits to compute a net present value, we can use any competitive price to determine a cash value, without checking 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.

---

Definitions:

Amino Acid

Organic compounds that serve as the building blocks of proteins, which are crucial for most biological processes.

Grouping

Grouping refers to the organization or arrangement of individuals, objects, or ideas into categories or clusters based on shared characteristics or themes.

N-formyl-methionine

A modified amino acid that serves as the starting amino acid in protein synthesis in prokaryotic cells.

Amino Terminal

The end of a protein or polypeptide chain where the amino group is not involved in a peptide bond; often symbolized as the 'N-terminus'.