We jointly re-specify the relative purchasing power parity (RPPP) and uncovered interest rate parity (UIP) conditions as the (log) ratio of stochastic discount factors by inverting the market price of risk formula. Our empirical model provides new insights, which show that violations to UIP and...

This study examines international dual stocks' exposure to two types of exchange rate effects/risks. One is an arbitrage effect and a deviation from the Law of One Price (LOOP). This is a simultaneous effect, is influenced by factors relating to the structure of the market and results in a stock...