A Note on the No Arbitrage Condition for International Financial Markets
نویسندگان
چکیده
We consider an international financial market model that consists of N currencies. The purpose is to derive a no arbitrage condition which is not affected by the choice of numéraire between the N currencies. As a result, we show that a finiteness condition for an arbitrary chosen currency and the no arbitrage condition for the basket currency are necessary and sufficient for the no arbitrage property of all the N currencies.
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