Since the collapse of the Metallgesellschaft AG due to hedging losses in 1993, energy practitioners have been concerned … hedging long-dated futures and options with their short-dated counterparts, we find that the long-term tracking errors are, on …

empirical strategy to test whether oligopolistic frms use forward contracts for strategic motives, for risk-hedging, or for both …. An increase in the number of players weakens the incentives to sell forward for risk-hedging reasons.However, if …

correlated to the foreign currency. By indirectly hedging its foreign exchange exposure the firm can increase its economic …

Cross hedging price risk in an incomplete financial market creates basis risk. We propose a new way of modeling basis … necessary and sufficient condition for underhedging in an unbiased market. Using the example of cross hedging jet fuel price … cross hedges differ significantly from those derived under the traditional additive cross hedging model …

markets of a commodity. This model provides a unifying framework for the hedging pressure and storage theories. The model …

We propose a maximum-expected utility hedging model with futures where cash and futures returns follow a bivariate skew … normality, skewness has a material impact when the agent is significantly risk averse. Pure hedging demand is either greater or … pure hedging and minimum-variance demand increases with basis risk, i.e. the imperfect correlation between cash and futures …

shown that both hedging and "reverse hedging" behavior are possible. In the general model with discrete trading, options on …