Purpose -The paper aims to propose a consistent and robust pricing/hedging methodology for callable fixed income … robust pricing/hedging methodology for callable fixed income structures with embedded caplet-linked options. Practical … Hull-White trees inadequate for the task of consistent pricing and hedging. Therefore, care must be taken to ensure …

exposure risk. In this regard, several hedging strategies are evaluated and compared with one another. Design … hedge tools brings a much more diversified selection of stock and bond markets than no hedging strategy. The optimal option … optimal forward hedging. In the out-of-sample study, the optimally forward-hedged strategy generally presents a much better …

firms. A simple model of exposure elasticity is also used to demonstrate the substantial impact of operational hedging on … research has suggested, but is simply the result of the endogeneity of operative and financial hedging at the firm level. Given … that empirical tests estimate exchange exposures net of corporate hedging, both firms with low gross exposures that do not …

-specific financial hedging and BRV-estimated FXE (but not TWI-estimated FXE), controlling for firm-specific non …-financial/operational hedging, size and industry effects. Moreover, firms in the first and fifth quintiles for measures of value/growth and size …