Which of the Following Statements Regarding the Law of One

question 11

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.

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Definitions:

Temperament

Temperament refers to the inherent aspects of an individual's personality, such as introversion or extroversion, which are evident from a very early age and are somewhat influenced by genetics.

Exuberant

Filled with or characterized by a lively energy and excitement.

Amygdala

A component of the brain's limbic system, involved in processing emotions, fear responses, and memory formation.

Prefrontal Cortex

The part of the brain located at the front of the frontal lobe, crucial for decision making, social behavior, and personality expression.