law of one price Definition

law of one price

Definition

An economic rule which states that in an efficient market, a security must have a single price, no matter how that security is created. For example, if an option can be created using two different sets of underlying securities, then the total price for each would be the same or else an arbitrage opportunity would exist.

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law of one price is ...
... part of the Bonds, Futures, Mutual Funds, Options and Stocks subjects.

law of one price appears in the definitions of these other terms on BusinessDictionary.com

arbitrage pricing theory (APT)