sources of exchange rate uncertainty. The firm has to cross-hedge its exchange rate risk exposure because there is only a … foreign countries, we show that the firm's production decision is independent of the firm's risk attitude and of the …

distribution that captures the firm's uncertainty about which of the subjective beliefs govern the exchange rate risk. Ambiguity … profit conditional on each plausible subjective distribution of the exchange rate risk. Within this framework, we show that …

This note examines the behavior of a competitive firm that faces joint price and inflation risk. Given that the price … risk is negatively correlated with the inflation risk in the sense of expectation dependence, the firm optimally opts for … an overhedge if the firm's coefficient of relative risk aversion is everywhere no greater than unity. Furthermore …

competitive firm that faces joint price and inflation risk. Given that the price risk is negatively correlated with the inflation … risk in the sense of expectation dependence, the firm optimally opts for an overhedge if the firm's coefficient of relative … risk aversion is everywhere no greater than unity. Furthermore, banning the firm from forward trading may induce the firm …