The law of one price states that the same commodity must sell at the same price in a well-functioning market TRUE/FALSE?

describe the process of short selling.   define the theoretical fair value of an asset and relate it to the concept of market efficiency.   discuss and relate the concepts of arbitrage and the law of one price.    describe how and why risk is transferred from hedgers to speculators in derivative  markets.

The existence of a market is very important to determining fair value. What factors would indicate an appropriate market exists?

Inflation is a general rise in market prices that affects all goods equally. OA. True OB. False

Compare and contrast the Spot market versus the Future market give examples.

What are the main differences between the Capital Asset Pricing Model (CAPM) and the Arbitrage Pricing Theory (APT) model? What are each model’s underlying assumptions, strengths and weaknesses?