Which of the Following Statements Regarding the Law of One

question 8

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 (NPV), 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 possible.

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Definitions:

Medulla Oblongata

In vertebrates, part of the brain stem that is continuous with the spinal cord; controls heartbeat, blood pressure, breathing, and other vital functions.

Respiration

The biochemical process in living organisms involving the intake of oxygen and the release of carbon dioxide, essential for energy production.

Heartbeat

The rhythmic contraction of the heart, pumping blood through the circulatory system to provide oxygen and nutrients to the body.

Cerebrum

the largest part of the brain, responsible for voluntary activities, intelligence, learning, and perceptions of the senses.