"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:

Rigid

Describes something or someone that is inflexible, strict, or unable to change.

Objective Power

The ability to influence others or affect outcomes based on one's position or resources, independently of personal characteristics.

Hire

The act of giving someone a job or employing them to perform specific duties in exchange for compensation.

Fire Employees

The act of terminating an employee's contract, removing them from their position within a company.