"If Equivalent Investment Opportunities Trade Simultaneously in Different Competitive Markets

question 35

Multiple Choice

"If equivalent investment opportunities trade simultaneously in different competitive markets, then they must trade for the same price in both markets." What do we call the above statement?

• A) The Net Present Value rule
• B) The Law of One Price
• C) The Valuation Principle
• D) The Time Value of Money

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Definitions:

UCC

The Uniform Commercial Code encompasses a wide-ranging body of legal principles that control commercial transactions across the United States.

Installment Contract

An agreement where payment is made in parts over a period, typically for real estate or high-value items, until the total price is paid in full.

Substantial Impairment

A legal concept referring to a significant decrease in the value or function of something, often related to contractual performance or property condition.

Commercial Impracticability

A doctrine under contract law that excuses a party from performance of the contract when unforeseen events make the fulfillment extremely difficult or expensive.