## Abstract Our research is motivated by the Corn Products vs Arkansas Best Supreme court decisions that brought on the controversy of the tax treatment of gains and losses from futures hedging. The usefulness of a futures contract as risk management tool depends on the tax code. In this paper we a
Uncertain tax rules and futures hedging
โ Scribed by Donald Lien
- Publisher
- John Wiley and Sons
- Year
- 1999
- Tongue
- English
- Weight
- 87 KB
- Volume
- 20
- Category
- Article
- ISSN
- 0143-6570
No coin nor oath required. For personal study only.
๐ SIMILAR VOLUMES
This paper examines the optimal futures hedging decision of a firm facing uncertain income that is subject to asymmetric taxation with no loss-offset provisions. All futures contracts are marked to market and require interim cash settlement of gains and losses. The firm is liquidity constrained in t
This paper examines the optimal bidding and hedging decisions of a risk-averse firm that takes part in an international tender. The firm faces multiple sources of uncertainty: exchange rate risk, risk of an unsuccessful tender, and business risk. The firm is allowed to trade unbiased currency future