Which of these are correct according to the law of one price? Assume you have $100 and Product X costs $100 in the U.S. Ignore
transaction and other related costs. Select all that apply.
- There should be no arbitrage opportunities associated with buying Product X anywhere in the world.
- The price of Product X should only vary from country to country by the exchange rate differential.
- The identical product should sell for 100 units of each country's currency.
- You should be able to purchase the same product in any country for the exact amount of currency you receive in exchange for $100.