7.3 The Law of One Price and Arbitrage Law of One Price: In a competitive market,if two assets are equivalent,they will tend to have the same price Ex.In the super market,water with similar ingredients are sold at the similar price THE COURSE OF FINANCE 2017 SPRING SJTU 107.3 The Law of One Price and Arbitrage  Law of One Price:  In a competitive market, if two assets are equivalent, they will tend to have the same price  Ex. In the super market, water with similar ingredients are sold at the similar price THE COURSE OF FINANCE 2017 SPRING SJTU 10