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A New Approach to International Arbitrage Pricing

Publication ,  Journal Article
BANSAL, R; HSIEH, DA; VISWANATHAN, S
Published in: Journal of Finance
January 1, 1993

This paper uses a nonlinear arbitrage‐pricing model, a conditional linear model, and an unconditional linear model to price international equities, bonds, and forward currency contracts. Unlike linear models, the nonlinear arbitrage‐pricing model requires no restrictions on the payoff space, allowing it to price payoffs of options, forward contracts, and other derivative securities. Only the nonlinear arbitrage‐pricing model does an adequate job of explaining the time series behavior of a cross section of international returns. 1993 The American Finance Association

Duke Scholars

Published In

Journal of Finance

DOI

EISSN

1540-6261

ISSN

0022-1082

Publication Date

January 1, 1993

Volume

48

Issue

5

Start / End Page

1719 / 1747

Related Subject Headings

  • Finance
  • 3801 Applied economics
  • 3502 Banking, finance and investment
  • 1502 Banking, Finance and Investment
 

Citation

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BANSAL, R., HSIEH, D. A., & VISWANATHAN, S. (1993). A New Approach to International Arbitrage Pricing. Journal of Finance, 48(5), 1719–1747. https://doi.org/10.1111/j.1540-6261.1993.tb05126.x
BANSAL, R., D. A. HSIEH, and S. VISWANATHAN. “A New Approach to International Arbitrage Pricing.” Journal of Finance 48, no. 5 (January 1, 1993): 1719–47. https://doi.org/10.1111/j.1540-6261.1993.tb05126.x.
BANSAL R, HSIEH DA, VISWANATHAN S. A New Approach to International Arbitrage Pricing. Journal of Finance. 1993 Jan 1;48(5):1719–47.
BANSAL, R., et al. “A New Approach to International Arbitrage Pricing.” Journal of Finance, vol. 48, no. 5, Jan. 1993, pp. 1719–47. Scopus, doi:10.1111/j.1540-6261.1993.tb05126.x.
BANSAL R, HSIEH DA, VISWANATHAN S. A New Approach to International Arbitrage Pricing. Journal of Finance. 1993 Jan 1;48(5):1719–1747.
Journal cover image

Published In

Journal of Finance

DOI

EISSN

1540-6261

ISSN

0022-1082

Publication Date

January 1, 1993

Volume

48

Issue

5

Start / End Page

1719 / 1747

Related Subject Headings

  • Finance
  • 3801 Applied economics
  • 3502 Banking, finance and investment
  • 1502 Banking, Finance and Investment