Law of one price
The law of one price states that two portfolios that will produce exactly the same cash flows in the future must have the same value to start with.
Law of one price
An economic rule stating that a given security must have the same price regardless of the means by which one goes about creating that security.
law of one price
The law of one price is a fundamental concept of finance theory. Consider two sets of future cash flows. These can be fixed (as in cash flows from Treasury bills) and/or contingent (as in cash flows from options).
law of one price
Theory that prices of goods in all countries should be equal when translated to a common currency.
Managed float ...
law of one price the notion that, with low transportation costs and no trade barriers, the same commodity is sold for the same price in two different countries when measured in the same currency. (31) ...
Law of One Price: States that if the identical product or service can be sold on two different markets, and no restrictions exist on the sale or transportation costs of moving the product between markets, ...
Law of One Price - The principle that equivalent assets sell for the same price. The law of one price is enforced in the currency markets by financial market arbitrage. Also known as purchasing price parity (PPP).
Law Of One Price
The theory that the price of a given security, commodity or asset will have the same price when exchange rates are taken into consideration. The law of one price is another way of stating the concept of purchasing power parity.
Law of one Price
In international economics, the strongest form of purchasing power parity whereby prices of identical products in different countries are equated by their exchange rates.
1.1 The law of one price
1.2 Assets with identical cash flows
1.3 An asset with a known future-price
2 Fixed income securities
3 Pricing derivatives ...
Law of One Price
The principle that identical goods should sell for the same price throughout the world if trade were free and frictionless.
LDC ...
Perfect market assumptions Conditions under which the law of one price holds. The assumptions include frictionless markets, rational investors, and equal access to market prices and information.
law of one price An economic principle, stating that in an efficient market, a security must... law of supply An economic principle, stating that if demand is held constant, an increase... lawful money Money having legal tender status.
Also called the "law of one price." Absolute Physical Life The period of use after which an asset has deteriorated to such an extent that it can no longer be used.
Purchasing power parity (PPP) and the law of one price (LOOP)
The PPP is a generalization of the law of one price (LOOP). The LOOP says that the same good sold in different countries should have the same price when expressed in common currency.
Conditions under which the law of one price holds. The assumptions include frictionless markets, rational investors, and equal access to market prices and information. Perfect market view (of capital structure) ...
If the same good sells for one hundred dollars in the United States and one hundred euros in Europe, then according to the law of one price the exchange rate between dollars and euros ought to be one.
Absolute form of purchasing power parity
A theory that prices of products of two different countries should be equal when measured by a common currency. Also called the "law of one price."
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 See also: Price risk, Options contract, Price-earnings ratio, Stock split, Equilibrium
  
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