"If Equivalent Investment Opportunities Trade Simultaneously in Different Competitive Markets,then

question 36

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
• E)an arbitrage opportunity

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Definitions:

Contraction

Contraction is the process of muscle fibers tightening or shortening, typically resulting in movement or the application of force.

Urinary Bladder

A muscular chamber that holds urine prior to its expulsion from the body.

Vasoconstriction

The narrowing of blood vessels, which increases blood pressure and decreases blood flow to certain areas.

Branch

A part of a tree that grows out from the trunk or from a bough.