๐”– Bobbio Scriptorium
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Risk-return measures of hedging effectiveness: The case of multiple cash and futures markets

โœ Scribed by Da-Hsiang Donald Lien


Book ID
112143206
Publisher
John Wiley and Sons
Year
1993
Tongue
English
Weight
324 KB
Volume
14
Category
Article
ISSN
0143-6570

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๐Ÿ“œ SIMILAR VOLUMES


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ntil very recently, commodity futures markets were largely ignored by the U vast majority of economists. At the same time, markets for foreign currencies were studied by only a relative handful of specialists in international trade and finance. This article describes an area which overlaps the two v

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ost empirical work and empirically oriented illustrations dealing with M the hedging effectiveness of futures contracts utilize either one of two approaches, namely: Risk minimization or payoff maximization. In the first approach, hedging is perceived as a combination of a futures position with an e

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e development of futures markets in financial instruments has provided fi-T. nancial intermediaries, among others, with a vehicle for hedging against unanticipated changes in interest rates.' Protection against these fluctuations can benefit lending institutions which have exposed themselves to inte