Hedging performance of shrimp futures contracts with multiple deliverable grades
✍ Scribed by Mart�nez-Garmendia, Josu�; Anderson, James L.
- Publisher
- John Wiley and Sons
- Year
- 1999
- Tongue
- English
- Weight
- 551 KB
- Volume
- 19
- Category
- Article
- ISSN
- 0270-7314
No coin nor oath required. For personal study only.
✦ Synopsis
The performance of the black tiger and white shrimp futures contracts traded in the Minneapolis Grain Exchange (MGE) is considered. These two futures contracts have suffered low trader participation since their inception despite the underlying multibillion-dollar cash shrimp market. The article tries to find answers for such lack of interest in the context of the multiple deliverable category character of both contracts. In particular, the hedging effectiveness and the adequacy of the premiums/discounts are measured for the various shrimp size categories traded in each contract. The analyses indicate that the hedging effectiveness of both contracts is relatively modest.