Hedging Effectiveness with Physical Delivery and Cash Settlement at Indian Commodity Futures Market : An Empirical Comparison Analysis
In the globalization era, competitive market requires efficient market dynamics challenging the asymmetric information flow on market activities. Out of several, the 'hedging' has the significant role in stabilizing the market, realizing market efficiency and enabling minimization of risk and thus maximizing utility. Effective hedging ensures the reliable and sustainable benefit at both the physical delivery and cash settlement at Indian commodity futures market. In addition, applying multivariate GARCH (1, 1) methodology these dynamics could be ascertained accurately