Taking a portfolio perspective on option pricing and hedging, we show that within the standard Black …-Scholes-Merton framework large portfolios of options can be hedged without risk in discrete time. The nature of the hedge portfolio in the … values of the options in our framework are driven by systematic and idiosyncratic risk factors. Instead of linearly (delta …

. The purpose of this paper is to examine the volatility spillovers for spot and futures returns on bio-ethanol and related … that the futures prices of bio-ethanol and the two agricultural commodities, corn and sugarcane, have stronger co … should be considered as viable futures products in financial portfolios for risk management. …

oil derivatives, specifically futures, and stock index returns in UK and USA. The paper will also analyze the Chinese … results, dynamic hedging strategies will be suggested to analyze market fluctuations in crude oil prices and associated …

derivatives markets. These hedging instruments include natural gas futures and options, as well as Exchange Traded Fund (ETF … gas spot markets, a large number of hedging strategies can be used, especially with the rapid development of natural gas … aspect of constructing optimal dynamic hedging strategies. The paper tests and calculates spillover effects among natural gas …

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 …

hedging product for the spot market, and the demand for this product is high when the market becomes risky: more risk averse …