Word forms: 3rd person singular present tense exemplifies, present participle exemplifying, past tense, past participle exemplified verb If a person or thing exemplifies something such as a situation, quality, or class of things, they are a typical example of it.
Law Of One Price. What is the 'Law Of One Price'. The law of one price is the economic theory that the price of a given security, commodity or asset has the same price when exchange rates are taken into consideration. The law of one price is another way of stating the concept of purchasing power parity. The law of one price exists due to arbitrage opportunities.
The same asset must trade at the same price on all markets (the law of one price). Where this is not true, the arbitrageur will: buy the asset on the market where it has the lower price, and simultaneously sell it (short) on the second market at the higher price.