Question: We often observe two stocks are having the same price at a particular time, but having different prices before and after that time. It does

We often observe two stocks are having the same price at a particular time, but having different prices before and after that time. It does not violate the Law of One Price, as Law of One Price requires the knowledge that price A is equal to (greater than, or less than) Price B at a particular time is known ex ante rather than observed as a realized fact.

True

False

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