Law of one price

The law of one price states that securities or commodities between countries will exhibit identical price levels when exchange rates are included on the equation. Basically, a mcdonald's cheeseburger should have the same value in China compared to its United States counterpart when exchange rates are included as a balancing factor.

Stocks | Forex | Options | Economics | Bonds | History | Language learning | Technology | Technical Analysis | Fundamental Analysis
Copyright © 2014 econtrader | Risk disclosure | Terms of Use