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Law of one price |
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Law of One PriceThe principle that identical goods should sell for the same price throughout the world if trade were free and frictionless.Law of one priceAn economic rule stating that a given security must have the same price no matter how the security is created. If the payoff of a security can be synthetically created by a package of other securities, the implication is that the price of the package and the price of the security whose payoff it replicates must be equal. If it is unequal, an arbitrage opportunity would present itself.Law of one price Similar MatchesNominal priceNominal pricePrice quotations on futures for a period in which no actual trading took place. Price effectPrice effectImpact of a change in interest rates on bond prices. Subscription priceSubscription pricePrice that current shareholders pay for a share of stock in a rights offering. Rental priceRental priceThe payment per unit time for the services of a unit of a factor of production, such as land or capital. Price ceilingPrice ceilingA government-imposed upper limit on the price that may be charged for a product. If that limit is binding, it implies a situation of excess demand and shortage. Further Suggestionsexercise priceprice to book value Market price Dollar price of a bond Flat price risk Price specie flow mechanism Striking Price Intercal Iso-price curve making a price Import price index price low Striking price Limit price Variable price security Relative price Market price Exchange Delivery Settlement Price Demand price Strike price Daily price limit Financial price risk mid price "Customer picking prices" Convertible price Maximum price fluctuation |
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