Law of one price

Definition: [crh] An 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 creatDefinition: ed 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 unDefinition: equal, an arbitrage opportunity would present itself.

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