Hedging decisions with price and output uncertainty
β Scribed by Moawia Alghalith
- Publisher
- Springer
- Year
- 2005
- Tongue
- English
- Weight
- 77 KB
- Volume
- 2
- Category
- Article
- ISSN
- 1614-2446
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## Abstract Using a general framework and a multipleβinput technology, we thoroughly investigate the hedging and production decisions under cost uncertainty. In doing so, we show the impact of the cost risk on the optimal output, hedge and hedge ratio. Copyright Β© 2006 John Wiley & Sons, Ltd.
## Abstract In this paper, the behavior of the competitive firm under price uncertainty when the firm has access to an intertemporally unbiased futures market is examined. Futures contracts are markedβtoβmarket and thus require interim cash settlement of gains and losses. The firm is subject to a l