On the optimal mix of corporate hedging
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Gerald D. Gay; Jouahn Nam; Marian Turac
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Article
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2003
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John Wiley and Sons
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English
โ 178 KB
๐ 1 views
## Abstract We examine how corporations should choose their optimal mix of linear and nonlinear derivatives. We present a model in which a firm facing both quantity (output) and price (market) risk maximizes its expected profits when subjected to financial distress costs. The optimal hedging positi