"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:

Touchable Object

An object that can be perceived or interacted with through the sense of touch.

Abstractness

A quality of being non-concrete or theoretical, representing ideas or concepts rather than physical realities.

Manufactured Item

A product that has been produced from raw materials through manual labor or machinery, often within an industrial or factory setting, designed for consumer use or further processing.

Clothing

Items worn on the body typically made from fabric, textiles, or animal skins, used for protection, modesty, and symbolic identification.