This paper presents international evidence on the use of financial derivatives for a sample of 7,292 non …-financial firms from 48 countries including the United States. Across all countries, 59.8% of the firms use derivatives in general …, while 43.6% use currency derivatives, 32.5% interest rate derivatives, and only 10.0% commodity price derivatives …

Recent changes in farm policy have renewed interest in using marketing strategies based on futures and options markets … theory of the behavior of futures and options markets, the efficient market hypothesis. The following conclusion is reached … exceeds the cost of storage, and then to use hedging to assure an expected positive return. …

It is well known that risk increases the value of options. This paper makes that precise in a new way. The conventional …

to incorporate the various degrees of persistence into the Black-Scholes pricing formula. Long memory options are of … considerable importance in corporate remuneration packages, since stock options are written on a company's own shares for long … valuation of such stock options, the degrees of persistence of the companies' share markets must be precisely measured and …

This paper characterizes optimal currency hedging in several models of downside risk. We consider, in turn, three … models of hedging: (i) a firm that chooses its hedging policy in the presence of bankruptcy costs; (ii) an all equity firm … contrary to conventional wisdom, we show that forwards dominate options as hedges of downside risk. …

fundamentally different option market structures, the Eurex derivatives exchange and Euwax, the world’s largest market for bank …-issued options. These markets exist side-by- side, offering many options with identical or similar characteristics. We motivate the …