FT MarketWatch

Law of one price

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.

Related Terms: 11 ACH, Arbitrage, ECU, Economic, Market, Option, PPO, Rent, SEC, Single, Unit
Other Related Pages: Category: Stocks Starting With: L
Additional Related Terms: 10-K, 30-day wash rule, Allowance for depreciation, Annuity unit, ACH, Accrual of discount, Accrued market discount, Agency security, Amortization of premium, Asked price