A Note on Dual Hedging

Under current Internal Revenue Services guidelines, gains from futures contracts serving price (quantity) risk management purposes are treated as ordinary (capital) income. This paper finds that, although dual hedging opportunities are available, the asymmetric tax treatment prevents firms from trading "quantity" futures contracts.

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Year of publication:	2004
Authors:	Lien, Donald
Published in:	International Journal of Business and Economics. - College of Business, ISSN 1607-0704. - Vol. 3.2004, 1, p. 29-34
Publisher:	College of Business
Subject:	dual hedging \| ordinary income \| capital income

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Extent:	application/pdf text/html
Type of publication:	Article
Classification:	G11 - Portfolio Choice
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10010837282