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. This implies that if the payoff of a security can be synthetically created by a package of other securities, 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 : 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. this implies that if the payoff of a security can be synthetically created by a package of other securities, 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