This paper uses a dynamic optimization model to estimate the welfare gains of hedging against commodity price risk for … commodity-exporting countries. We show that the introduction of hedging instruments such as futures and options enhances …

Given a European derivative security with an arbitrary payoff function and a corresponding set of" underlying … securities on which the derivative security is based, we solve the dynamic replication problem: find a" self-financing dynamic …

volatility associated with current dynamic hedging strategies. There will thus be less information transmitted to those people … trades implied by the dynamic hedging strategies, In effect, the stocks' future price volatility can rise because of a … current lack of information about the extent to which dynamic hedging strategies are in place …

One of the most critical concerns that customers have voiced in the debate over real-time retail electricity pricing is … that they would be exposed to risk from fluctuations in their electricity cost. The concern seems to be that a customer … very simple hedging strategies can eliminate more than 80% of the bill volatility that would otherwise occur. Far from …

consistent with the claim that index-fund investing has become more important relative to commerical hedging in determining the …

Agricultural and energy commodity prices have traditionally exhibited relatively low correlation. However, recent … increases in biofuel production have altered the agriculture-energy relationship in a fundamental way. This increase has drawn …