Loading...
 
Skip to main content
(Cached)

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.

Page last modified on Friday November 29, 2013 14:10:37 GMT-0000