Arbitrage opportunities exist only where the law of one price isn't operating.
What does LOOP stand for?
LOOP stands for Law of One Price (finance, economics)
This definition appears frequently and is found in the following Acronym Finder categories:
- Business, finance, etc.
See other definitions of LOOP
We have 21 other meanings of LOOP in our Acronym Attic
- Light Opera Oklahoma (formerly LOOK Musical Theatre; Tulsa, OK)
- Laboratory for the Ocean Observatory Knowledge Integration Grid
- Laughing Outrageously Out Loud (Internet/chat/email)
- Leave-One-Out Likelihood (statistics)
- Large Object-Oriented Memory (information technology)
- Leave-One-Out Method (neural networks)
- Liverpool Logistics, Offshore and Marine Centre (UK)
- Loyal Order of Moose
- Laughing Out of My Ass
- Lotus Owners Oftha North (Minnesota)
- Leaders of Oak Park (Kansas City, MO)
- Life on Other Planets (Supergrass album)
- Lifeline of Ohio Organ Procurement Agency (Columbus, OH)
- Long-Range Open Ocean Patrol
- Loss Of Offsite Power
- Louisiana Offshore Oil Port, Inc.
- Loop While Equal
- Language for Object-Oriented Petri Nets (computer programming)
- Loop While Not Equal
- Loop While Not Zero
Samples in periodicals archive:
Failure of the Law of One Price Relative cross-border retail prices, in a common currency, co-move closely with the nominal exchange rate.
This result shows how much Ukrainian currency has deviated from its true value, according to the Law of One Price (one product needs to be priced equally in different countries).
The Law of One Price The idea behind PPP evolved from the law of one price, the idea that arbitrage will ensure that the same good sold both here and abroad will have the same price when that price is expressed in a common currency.
As stated originally, the venerable law of one price succinctly describes long-run equilibrium in a perfectly competitive market.
The authors indicate three restrictions of the model that could be amended in future work to allow more realistic adjustments in the current account: (1) The law of one price holds continuously, (2) households fully share risk via international financial markets, and (3) households invest in only financial, not physical, assets.
cities from 1975 to 1992 and find persistent deviations from the law of one price for both traded and nontraded goods.
More than 70 signature menu item prices are sampled every month in order to develop an exchange rate measure based on the so-called law of one price hypothesis.