securities are derivative contracts that are contingent on state variables that influence adverse selection costs. This is … because the netting of cash flows in these derivative contracts, in effect, alters the state-by-state seniority of different …

in foreign currency. So the firm's hedging strategy is simple: sell foreign currency futures equal to the value of its … and its marginal cost in order to assess its exposure to exchange rates. So its hedging strategy also requires detailed …

volatility on international trade. A common explanation is the availability of hedging instruments. This paper examines the … empirical validity of this explanation using data on over 1,000 country pairs. Which countries have currency hedging instruments …. There are two main findings. First, there is no evidence in the data to support the validity of the hedging hypothesis …

This paper is a comparative study of the responses to the 1995 Wharton School survey of derivative usage among US non … derivative usage is most common, followed closely by interest rate derivatives, with commodity derivatives a distant third. In … contrast to the similarities, firms in the two countries differ notably on issues such as the primary goal of hedging, their …

consistent with economic theory. Forward interest rates also forecast future spot interest rates and future inflation. Thus, we …

comparable to that of returns in stock markets. Evidence is shown that there may be only minimal possibility of cross hedging … examined. Such markets, by allowing hedging of these aggregate income risks, might make for dramatically more effective …